CBN Revokes Licenses of 46 Microfinance Banks
The Central Bank of Nigeria (CBN) revoked the operating licenses of 46 microfinance banks on July 1, 2026, citing failure to meet regulatory requirements. The action, approved by CBN Governor Olayemi Cardoso under the Banks and Other Financial Institutions Act (BOFIA) 2020, aims to enhance oversight and protect depositors. Among the affected institutions was Sycamore Microfinance Bank, a subsidiary of the fintech platform Sycamore.
Sycamore CEO Babatunde Akin-Moses Addresses Concerns
Babatunde Akin-Moses, co-founder and CEO of Sycamore, released a statement on July 1 via Facebook to allay customer fears. He confirmed that the firm's core operations remain fully active and unaffected by the license revocation. The Sycamore app continues to function, allowing customers to save, invest, borrow, and transact as usual. Akin-Moses emphasized that all customer funds and investments are safe and secure, and the company remains committed to high standards of governance, transparency, and regulatory compliance.
In his post, Akin-Moses wrote: "Hello everyone, I've received a number of calls and messages following today's CBN announcement, so I wanted to provide a brief update. I want to reassure you that Sycamore's core operations remain fully active and unaffected. Our app is fully functional, and customers can continue to save, invest, borrow, and transact as usual. Most importantly, all customer funds and investments remain safe and secure. We remain committed to the highest standards of governance, transparency, and regulatory compliance, and we will continue to keep our customers and stakeholders informed as appropriate."
Customer Reactions to the CEO's Statement
The CEO's statement drew positive reactions from customers on social media. Godgift Celestine Nwogu expressed relief: "Glad to read this. I was a bit worried when I saw the list. Welldone sir." Mulekanle Lawrence Adeyeba added: "Glad to read this. Sycamore is coming bigger and better. No shaking sir." Àyánníyì Taíwò James thanked Akin-Moses for the clarification, while Adebola Ade-Martins viewed the development as a stepping stone for greater things. Elijah Ayemhenre praised the prompt communication, stating: "This is exactly the kind of prompt communication that builds confidence and shows a company is serious about its business."
Why CBN Revoked the Licenses
The CBN explained that the 46 microfinance banks failed to meet the requirements for remaining licensed as financial institutions. This revocation is part of the CBN's ongoing efforts to safeguard the stability of Nigeria's financial system, protect depositors, and ensure compliance with relevant laws and prudential standards. The affected banks were given no prior public warning before the announcement, according to reports from BusinessDay. The CBN's action underscores its commitment to enforcing regulatory discipline in the microfinance banking sector.
