July 01, (THEWILL) — The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MFBs) across the country, citing their failure to meet key regulatory requirements for continued operation.
The apex bank announced that the revocation took effect from July 1, 2026, following the approval of the CBN Governor, Mr 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.
In a statement issued on Wednesday by the Acting Director of the Corporate Communications Department, Mrs Hakama Sidi-Ali, the CBN said the affected institutions had failed to satisfy the minimum conditions required to retain their licences as regulated financial institutions.
According to the statement, the decision was necessitated by one or more serious regulatory infractions, 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 after licence approval, and failure to maintain the prescribed minimum capital unimpaired by losses.
The apex bank explained that the action forms part of its ongoing supervisory measures aimed at strengthening the Nigerian financial system, safeguarding depositors’ funds, and ensuring that licensed financial institutions comply with extant laws and prudential 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 read.
The CBN reaffirmed its commitment to maintaining a safe, sound and resilient financial system, adding that it would continue to deploy appropriate supervisory and regulatory measures against erring financial institutions whenever necessary to preserve public confidence in Nigeria’s banking industry.
The affected institutions cut across several states and licence categories, including Tier 1, Tier 2 and State Microfinance Banks.
Among the affected lenders are Minji-Se Churchill MFB (Rivers), Merchant MFB (Abia), Janmaa MFB (Kwara), Busu MFB (Niger), Gold MFB (Lagos), Zain MFB (formerly Dawakin Tofa MFB), Bompai MFB, Ajwa MFB (formerly Gezawa), NOW NOW Digital MFB, Crystal Microfinance Bank (Bayelsa), Chanelle MFB (Lagos), Abia SME MFB, Kamba MFB (Kebbi), Iwade MFB (Ogun), Winview MFB (FCT), Zuru MFB (Kebbi), Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Mwaghavul MFB (Plateau), Sycamore MFB, TOFA MFB, Safegate MFB (Lagos), Creekline MFB (Delta), Bestar MFB (Oyo), Livingspring MFB (Cross River), Apple MFB (Ogun), Stanford MFB (Akwa Ibom), Frontline MFB (Anambra), Zafec MFB (Kaduna), Supreme MFB (Lagos), Bejin-Doko MFB (Niger), Kanopoly MFB (Kano), Bellbank MFB (formerly Tsanyawa MFB), Yeneng MFB (Plateau), Creditville MFB (Lagos), MBAG MFB (Lagos), Straight Sahara MFB (Benue), Ourpass MFB (Ondo), Verdant MFB (Lagos), Basawa MFB (Kaduna), CASHA MFB (FCT), Esteem MFB (Kano), Entrepreneur MFB (Lagos), and Avantus MFB (Osun).
The latest regulatory action underscores the CBN’s intensified oversight of the microfinance banking subsector as it seeks to improve corporate governance, enforce prudential standards, and enhance the overall stability of Nigeria’s financial system.
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