The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing persistent regulatory breaches and failure to meet minimum operational requirements. The revocation took effect on July 1, 2026, following the approval of CBN Governor Mr. Olayemi Cardoso under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
CBN Explains Reasons for Revocation
According to the CBN, the affected institutions failed to satisfy key regulatory conditions. The regulator cited infractions including insufficient assets to meet liabilities, closure of operations without CBN approval, inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving a licence, and failure to maintain minimum capital requirements without impairment from losses.
The CBN stressed that the enforcement action is part of broader efforts to strengthen the financial system, safeguard depositors' funds, and ensure compliance with extant laws and prudential regulations. The announcement was signed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, on July 1, 2026.
Full List of Affected Microfinance Banks
The 46 institutions whose licences were revoked are: Minji-Se Churchill MFB (Rivers), Merchant MFB (Abia), Janmaa MFB (Kwara), Busu MFB (Niger), Gold MFB (Lagos), Zain MFB (formerly Dawakin Tofa MFB) (Kano), Bompai MFB (Kano), Ajwa MFB (formerly Gezawa MFB) (Kano), NOW NOW Digital MFB (Kano), Crystabel Microfinance Bank (Bayelsa), Chanelle MFB (Lagos), Abia SME MFB (Abia), Kamba MFB (Kebbi), Iwade MFB (Ogun), Winview MFB (Abuja), Zuru MFB (Kebbi), Minjibir MFB (Kano), Shanono MFB (Kano), Sumaila MFB (Kano), Rimin Gado MFB (Kano), Mwaghavul MFB (Plateau), Sycamore MFB (Kano), TOFA MFB (Kano), Safegate MFB (Lagos), Creekline MFB (Delta), Bestar MFB (Oyo), Livingspring MFB (Cross River), Apple MFB (Ogun), Stanford MFB (Uyo), Frontline MFB (Anambra), Zafec MFB (Kaduna), Supreme MFB (Lagos), Bejin-Doko MFB (Niger), Kanopoly MFB (Kano), Bellbank MFB (formerly Tsanyawa MFB) (Kano), Yeneng MFB (Plateau), Creditville MFB (Lagos), MBAG MFB (Lagos), Straight Sahara MFB (Benue), OurPass MFB (Ondo), Verdant MFB (Lagos), Basawa MFB (Kaduna), Casha MFB (Abuja), Esteem MFB (Kano), Entrepreneur MFB (Lagos), and Avantus MFB (Osun).
Impact on Financial System
The CBN said it remains committed to promoting a safe, sound, and resilient financial system. The regulator will continue to take supervisory and regulatory actions to sustain public confidence in Nigeria's banking industry. This revocation is one of the largest single actions against microfinance banks in recent years, underscoring the CBN's determination to enforce compliance and improve governance standards.
According to a report by TheCable, the move aims to preserve the stability of Nigeria's financial sector. The CBN's action follows a trend of increased regulatory oversight, including the recent merger of Providus Bank and Unity Bank to form ProvidusUnity Bank, which was completed on June 28, 2026, after regulatory, shareholder, and judicial approvals.
