CBN Revokes Licences of 46 Microfinance Banks

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs) across the country in one of its biggest regulatory enforcement actions in recent years, citing widespread failure to comply with the conditions required for continued operation.

The decision, which took immediate effect on July 1, 2026, was approved by CBN Governor Olayemi Cardoso under the powers granted to the apex bank miby Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020. The announcement was made in a statement signed by the Acting Director of Corporate Communications, Hakama Sidi-Ali.

Why the Licences Were Revoked

According to the CBN, the affected institutions no longer met the minimum regulatory requirements to continue operating as licensed financial institutions.

The regulator said investigations found that one or more of the banks had:

Failed to maintain the statutory minimum capital requirement.
Had insufficient assets to meet their liabilities.
Ceased banking operations or financial intermediation for prolonged periods.
Shut down operations without obtaining prior approval from the CBN.
Failed to commence operations within 12 months after obtaining their licences.

The CBN stressed that the move forms part of its ongoing efforts to strengthen supervision of Nigeria’s financial system, enforce regulatory compliance and protect depositors from the risks associated with distressed financial institutions.

Notable Banks on the List

Among the affected institutions are several well-known names in Nigeria’s microfinance and digital banking ecosystem, including:

NOW NOW Digital MFB
Sycamore MFB
Creditville MFB
Merchant MFB
Gold MFB
Apple MFB
Frontline MFB
Safegate MFB
OurPass MFB
Verdant MFB
Entrepreneur MFB
Avantus MFB

The full list also includes Minji-Se Churchill MFB, Janmaa MFB, Bompai MFB, Ajwa MFB, Crystabel MFB, Chanelle MFB, Abia SME MFB, Kamba MFB, Iwade MFB, Winview MFB, Zuru MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Mwaghavul MFB, Tofa MFB, Creekline MFB, Bestar MFB, Livingspring MFB, Stanford MFB, Zafec MFB, Supreme MFB, Bejin-Doko MFB, Kanopoly MFB, Bellbank MFB, Yeneng MFB, MBAG MFB, Straight Sahara MFB, Basawa MFB, Casha MFB and Esteem MFB, among others. (Pulse Nigeria)

What This Means for Customers

While the CBN has not yet released detailed guidance for customers of the affected banks, revocation of a banking licence means the institutions are no longer legally permitted to operate as licensed microfinance banks.

Historically, in similar cases, the Nigeria Deposit Insurance Corporation (NDIC) assumes responsibility for the liquidation process and works to reimburse insured depositors in accordance with existing laws. The CBN is expected to provide further updates on the resolution process where necessary.

Customers with deposits, loans or other financial relationships with any of the affected banks are advised to monitor official communications from the CBN and the NDIC for instructions regarding claims and other next steps.

Part of a Wider Financial Sector Cleanup

The latest action reflects the CBN’s ongoing campaign to strengthen Nigeria’s financial sector through stricter regulatory oversight. Since Governor Olayemi Cardoso assumed office, the apex bank has intensified enforcement measures aimed at ensuring that licensed financial institutions meet prudential standards and maintain adequate capital.

The regulator maintains that institutions unable to satisfy minimum operational and financial requirements pose risks to depositors and could undermine confidence in the banking system if allowed to continue operating.

“The revocation of the licences 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 CBN said in its statement.