CBN REVOKES LICENCES OF 46 MICROFINANCE BANKS OVER REGULATORY BREACHES
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By Aishat Momoh. O.
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country for failing to meet key regulatory requirements for continued operations.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali.
According to the CBN, the revocation, which took effect from July 1, 2026, was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, in line with the powers conferred on the bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The regulator said the affected institutions failed to satisfy the conditions required to continue operating as licensed financial institutions.
It explained that the decision followed findings that one or more regulatory infractions had been established against the banks, including 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 obtaining licences, and failure to maintain the prescribed minimum capital unimpaired by losses.
The affected institutions include Tier 1, Tier 2 and State microfinance banks located across Lagos, Kano, the Federal Capital Territory, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra states.
Among the banks whose licences were revoked 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.
Also affected are several Kano-based institutions, 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 CBN said the action forms part of its broader efforts to strengthen the stability of Nigeria’s financial system, protect depositors and ensure strict compliance with existing banking laws and regulations.
“The revocation of the licences 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 said.
The apex bank reaffirmed its commitment to maintaining a safe, sound and resilient financial system, adding that it would continue to take appropriate supervisory and regulatory actions where necessary to sustain public confidence in the nation’s banking sector.
Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) recently assured depositors that their funds remain protected despite bank failures.
The Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed during the second-quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja that more than 281 million depositors are currently covered under the country’s deposit insurance scheme.
According to him, the corporation now provides deposit insurance coverage across 914 licensed financial institutions, with over 98 per cent of depositors fully insured following the upward review of deposit insurance limits in May 2024.
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