The Nigeria Deposit Insurance Corporation (NDIC) has begun the takeover and liquidation of 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria (CBN) effective July 1, 2026. The corporation has warned customers and the public against carrying out any transactions with the affected institutions or interfering with their assets and records.
Regulatory action by CBN
The CBN revoked the licences of the 46 microfinance banks after determining that they no longer met regulatory requirements to operate as licensed financial institutions. According to the apex bank, the affected institutions were sanctioned for reasons including insufficient assets to meet liabilities, operating without regulatory approval, prolonged inactivity, failure to commence business within the stipulated period, and failure to maintain the minimum capital required by law.
NDIC appointed official liquidator
In a statement issued by the Head of Communication and Public Affairs Department of the NDIC, Hawwau Gambo, the corporation said it had been appointed the official liquidator of the failed banks under Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 55(1) and (2) of the NDIC Act 2023. Gambo said the appointment empowers the corporation to oversee the orderly winding up of the banks and protect the interests of depositors.
"Following the revocation of the operating licences of 46 Microfinance Banks by the Central Bank of Nigeria on July 1, 2026, the Nigeria Deposit Insurance Corporation has been appointed as the official liquidator," she said.
Process of liquidation and depositor protection
She added that the affected institutions have ceased to operate as licensed financial institutions and are no longer authorised to conduct banking business in Nigeria. The NDIC also announced that it has commenced the immediate takeover of the banks, verification of depositors, and payment of insured deposits to eligible customers.
"The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors," the corporation stated.
Warning to the public
The corporation warned members of the public not to carry out any unauthorised transactions with the failed banks or interfere with their assets, records, or properties. "Members of the public are strongly advised against any unauthorised transaction with the closed banks, or any attempt by individuals to remove, conceal, retain or interfere with the assets, records or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences," the statement added.
NDIC urged affected depositors to remain calm, assuring them that further updates would be provided on the verification of claims and payment of insured deposits as the liquidation process progresses.
Full list of 46 affected microfinance banks
The following microfinance banks had their licences revoked: Minji-Se Churchill Microfinance Bank, Merchant Microfinance Bank, Janmaa Microfinance Bank, Busu Microfinance Bank, Gold Microfinance Bank, Zain Microfinance Bank (formerly Dawakin Tofa MFB), Bompai Microfinance Bank, Ajwa Microfinance Bank (formerly Gezawa MFB), NOW NOW Digital Microfinance Bank, Crystabel Microfinance Bank, Chanelle Microfinance Bank, Abia SME Microfinance Bank, Kamba Microfinance Bank, Iwade Microfinance Bank, Winview Microfinance Bank, Zuru Microfinance Bank, Minjibir Microfinance Bank, Sycamore Microfinance Bank, Creditville Microfinance Bank, Apple Microfinance Bank, Frontline Microfinance Bank, Safegate Microfinance Bank, OurPass Microfinance Bank, Verdant Microfinance Bank, Avantus Microfinance Bank, Entrepreneur Microfinance Bank, Fortress Microfinance Bank, BorrowPay Microfinance Bank, Crownbond Microfinance Bank, GoMoney Microfinance Bank, M36 Microfinance Bank, Ahmadu Bello University Microfinance Bank, Green Energy Microfinance Bank, XSLNCE Microfinance Bank, Iconic Microfinance Bank, Asset Matrix Microfinance Bank, Mutual Alliance Microfinance Bank, Highland Microfinance Bank, Fortress Digital Microfinance Bank, VFD Microfinance Bank, Rehoboth Microfinance Bank, Virtue Microfinance Bank, Pivot Microfinance Bank, Olive Microfinance Bank, Nuture Microfinance Bank, and Maxi Microfinance Bank.
Broader implications
The CBN said the action forms part of its ongoing efforts to strengthen the stability of Nigeria's banking sector, protect depositors, and ensure that only financially sound institutions remain licensed to operate. Meanwhile, the NDIC said it will continue to update depositors and other stakeholders as the liquidation exercise, claims verification, and payment process continue.
