CBN revokes licences of 46 microfinance banks
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks for failing to meet regulatory requirements for continued operation. The apex bank disclosed on Wednesday that the revocation was carried out in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the CBN, the licences were revoked because the affected microfinance banks had insufficient assets to meet their liabilities, closed operations without regulatory approval, or became inactive and ceased financial intermediation. The revocations were also attributed to the banks’ failure to commence operations within 12 months of obtaining their licences and failure to maintain the minimum capital funds unimpaired by losses.
Geographic breakdown of affected banks
Kano State accounted for the highest number of affected banks, with 13 institutions, followed by Lagos with 8. Abia, the Federal Capital Territory (Abuja), Kaduna, Kebbi, Niger, Ogun, and Plateau each recorded two banks. Anambra, Akwa Ibom, Bayelsa, Benue, Cross River, Delta, Kwara, Ondo, Osun, Oyo, and Rivers had one bank each.
By category, 25 of the affected institutions were Tier 2 microfinance banks, 18 were Tier 1 microfinance banks, and three were State microfinance banks. The regulator said the licence revocation forms part of its ongoing efforts to strengthen oversight of the financial system and ensure that licensed financial institutions comply with extant laws and prudential regulations.
Full list of microfinance banks with revoked licences
The CBN published the following list of 46 microfinance banks whose licences were revoked:
- Minji-Se Churchill MFB (Tier 1, Rivers)
- Merchant MFB (Tier 2, Abia)
- Janmaa MFB (Tier 1, Kwara)
- Busu MFB (Tier 2, Niger)
- Gold MFB (Tier 1, Lagos)
- Zain MFB (formerly Dawakin Tofa MFB) (Tier 2, Kano)
- Bompai MFB (Tier 1, Kano)
- Ajwa MFB (formerly Gezawa MFB) (Tier 2, Kano)
- NOW NOW DIGITAL MFB (Tier 2, Kano)
- Crystabel Microfinance Bank (Tier 1, Bayelsa)
- Chanelle MFB (State, Lagos)
- Abia SME MFB (Tier 1, Abia)
- Kamba MFB (Tier 2, Kebbi)
- Iwade MFB (Tier 2, Ogun)
- Winview MFB (Tier 1, Abuja FCT)
- Zuru MFB (Tier 2, Kebbi)
- Minjibir MFB (Tier 1, Kano)
- Shanono MFB (Tier 2, Kano)
- Sumaila MFB (Tier 2, Kano)
- Rimin Gado MFB (Tier 2, Kano)
- Mwaghavul MFB (State, Plateau)
- Sycamore MFB (Tier 2, Kano)
- TOFA MFB (Tier 2, Kano)
- Safegate MFB (Tier 1, Lagos)
- Creekline MFB (Tier 2, Delta)
- Bestar MFB (Tier 1, Oyo)
- Livingspring MFB (Tier 1, Cross River)
- Apple MFB (Tier 2, Ogun)
- Stanford MFB (State, Uyo)
- Frontline MFB (Tier 2, Anambra)
- Zafec MFB (Tier 2, Kaduna)
- Supreme MFB (Tier 1, Lagos)
- Bejin-Doko MFB (Tier 2, Niger)
- Kanopoly MFB (Tier 1, Kano)
- Bellbank MFB (formerly Tsanyawa MFB) (Tier 2, Kano)
- Yeneng MFB (Tier 2, Plateau)
- Creditville MFB (Tier 1, Lagos)
- MBAG MFB (Tier 1, Lagos)
- STRAIGHT SAHARA MFB (Tier 1, Benue)
- OURPASS MFB (Tier 2, Ondo)
- VERDANT MFB (Tier 1, Lagos)
- BASAWA MFB (Tier 2, Kaduna)
- CASHA MFB (Tier 2, Abuja FCT)
- ESTEEM MFB (Tier 2, Kano)
- ENTERPRENEUR MFB (Lagos)
- AVANTUS MFB (Tier 2, Osun)
