File photo of CBN
The Central Bank of Nigeria has cancelled the operating licences of 46 microfinance banks across the country, citing their failure to meet key regulatory requirements for continued operations.
The apex bank disclosed this in a statement issued on Wednesday and signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali.
The revocation, which took effect from July 1, 2026, followed the approval of the CBN Governor, Olayemi Cardoso.
According to the statement, the action was taken in line with the powers conferred on the CBN under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.
“The Central Bank of Nigeria has revoked the operating licenses of forty-six (46) Microfinance Banks with effect from July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020,” the statement read.
The CBN said the revocation was approved after the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.
“The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” it stated.
The regulator explained that the decision became necessary because one or more of several infractions were established against the affected institutions.
These included insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving licences and failure to maintain the prescribed minimum capital unimpaired by losses.
The affected lenders comprise Tier 1, Tier 2 and State microfinance banks spread across several states, including Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra.
Among them are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank and NOW NOW Digital Microfinance Bank.
Several Kano-based institutions were also affected, including Bompai Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, TOFA Microfinance Bank, Kanopoly Microfinance Bank and Esteem Microfinance Bank.
The apex bank said the measure forms part of its broader efforts to strengthen financial sector stability and enforce compliance with existing laws.
“The revocation of the licenses is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements,” the statement added.
Reaffirming its commitment to financial system stability, the CBN said it would continue to take supervisory and regulatory actions where necessary.
“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement said.
The Nigeria Deposit Insurance Corporation earlier said that more than 281 million depositors across the country’s banking system are protected against bank failure, following reforms that significantly expanded deposit insurance coverage and accelerated reimbursement of customers of failed banks.
The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed this recently during the second quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja.
According to Sunday, the corporation currently provides deposit insurance coverage across 914 licensed financial institutions, while over 98 per cent of depositors are fully insured for their entire balances following the upward review of deposit insurance limits in May 2024.
