The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs) across the country, effective July 1, 2026. The decision, approved by CBN Governor Olayemi Cardoso under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020, targets institutions that failed to meet key regulatory requirements.
Affected Institutions
Among the affected banks are NOW NOW Digital MFB, Sycamore MFB, Creditville MFB, Apple MFB, Merchant MFB, Gold MFB, Frontline MFB, Safegate MFB, OurPass MFB, Verdant MFB, Avantus MFB, and Entrepreneur MFB, along with many others spread across various states.
Reasons for Revocation
The CBN stated that the licences were revoked due to several infractions, including insufficient assets to cover liabilities, shutting down operations without regulatory approval, prolonged inactivity, failure to commence operations within one year of approval, and failure to maintain the required minimum capital. The move is part of the CBN's ongoing efforts to tighten regulation in the banking sector.
Protecting Depositors and Financial Stability
In a statement signed by Hakama Sidi-Ali, Acting Director of Corporate Communications, the regulator said: "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: "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."
List of Some Affected Banks
- Minji-Se Churchill MFB Tier 1 (Rivers State)
- Merchant MFB Tier 2 (Abia State)
- Janmaa MFB Tier 1 (Kwara State)
- Busu MFB Tier 2 (Niger State)
- Gold MFB Tier 1 (Lagos State)
- Zain MFB (formerly Dawakin Tofa MFB) Tier 2 (Kano State)
- Bompai MFB Tier 1 (Kano State)
- Ajwa MFB (formerly Gezawa MFB) Tier 2 (Kano State)
- NOW NOW Digital MFB Tier 2 (Kano State)
Impact on Customers
While the revocation affects the banks' licences, customers with funds in any of the affected institutions are expected to await further directives from relevant regulatory authorities regarding deposits and possible liquidation processes. The CBN's action underscores its commitment to enforcing compliance and maintaining a stable financial system.
