The Central Bank of Nigeria (CBN) has intensified its oversight of the financial sector as CBN revokes the operating licences of 46 microfinance banks over insolvency, prolonged inactivity, inadequate capital, and other regulatory violations.
The decision took effect on July 1, 2026, following approval by the Governor of the Central Bank of Nigeria, Olayemi Cardoso. According to the apex bank, the affected institutions failed to meet the regulatory conditions required to continue operating as licensed financial institutions.
The announcement was contained in a statement signed by the Director of Corporate Communications, Hakama Sidi Ali. The CBN said the action was taken under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, after extensive supervisory reviews.
CBN revokes licences over serious regulatory breaches
The regulator said the affected microfinance banks committed several serious infractions that made them ineligible to retain their operating licences.
According to the statement, the violations included maintaining insufficient assets to meet liabilities, failing to maintain the statutory minimum capital requirement, remaining inactive for prolonged periods, shutting down operations without regulatory approval, and failing to commence operations within 12 months of receiving their licences.
The CBN said CBN revokes licences only after institutions fail to satisfy legal and prudential requirements despite regulatory oversight.
“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,” the statement said.
CBN revokes licences to strengthen financial stability
The apex bank explained that CBN revokes licences as part of its broader strategy to strengthen Nigeria’s financial system and safeguard depositors.
According to the regulator, weak financial institutions can expose customers to financial losses and undermine confidence in the banking sector. Consequently, removing non-compliant institutions helps improve the resilience of the financial system.
The CBN reiterated that it remains committed to promoting a safe, sound and resilient banking environment through effective supervision and prompt enforcement of banking regulations.
The regulator added that it would continue taking appropriate supervisory actions whenever financial institutions fail to comply with prudential guidelines.
CBN revokes licences of 46 affected microfinance banks
The affected institutions include Tier 1, Tier 2 and State Microfinance Banks operating across several states.
Among them are Minji-Se Churchill MFB, Merchant MFB, Janmaa MFB, Busu MFB, Gold MFB, Zain MFB, Bompai MFB, Ajwa MFB, NOW NOW DIGITAL MFB, Crystabel Microfinance Bank, Chanelle MFB, Abia SME MFB, Kamba MFB, Iwade MFB, Winview MFB, Zuru MFB, Minjibir MFB, Shanono MFB, Sumaila MFB and Rimin Gado MFB.
Others are Mwaghavul MFB, Sycamore MFB, TOFA MFB, Safegate MFB, Creekline MFB, Bestar MFB, Livingspring MFB, Apple MFB, Stanford MFB, Frontline MFB, Zafec MFB, Supreme MFB, Bejin-Doko MFB, Kanopoly MFB, Bellbank MFB, Yeneng MFB, Creditville MFB, MBAG MFB, Straight Sahara MFB, OurPass MFB, Verdant MFB, Basawa MFB, Casha MFB, Esteem MFB, Entrepreneur MFB and Avantus MFB.
The banks are located across Lagos, Kano, Rivers, Ogun, Kaduna, Plateau, Kebbi, Niger, Bayelsa, Benue, Delta, Cross River, Ondo, Osun, Abia, Kwara and the Federal Capital Territory.
Why CBN revokes non-compliant bank licences
The latest enforcement action highlights the CBN’s determination to ensure that only financially healthy institutions remain in operation.
Microfinance banks play an important role in expanding financial inclusion by serving small businesses, rural communities and low-income customers. However, institutions that fail to maintain adequate capital or comply with regulatory standards can pose risks to depositors and the wider economy.
For this reason, CBN revokes licences where necessary to preserve confidence in Nigeria’s banking industry. The regulator stressed that compliance with prudential requirements remains mandatory for every licensed financial institution.
Industry analysts believe CBN revokes licences to reinforce market discipline and improve the overall health of the financial sector. They also say the latest action sends a strong message that regulatory compliance, sound corporate governance and adequate capitalization remain essential for all microfinance banks operating in Nigeria.
