CBN revokes licences of 46 Microfinance Banks over regulatory breaches

By Johnson Arua

The Central Bank of Nigeria, CBN, has revoked the operating licences of 46 Microfinance Banks, MFBs, over their failure to comply with regulatory requirements for continued operation.

The apex bank, in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, said the revocation took effect from July 1, 2026, in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act, BOFIA, 2020.

According to the CBN, the action was approved by its Governor, Mr. Olayemi Cardoso, as part of measures aimed at protecting depositors, strengthening the financial system and ensuring strict compliance with extant banking regulations.

The bank explained that the affected institutions were found wanting on one or more regulatory grounds, including insufficient assets to meet liabilities, shutting down operations without regulatory approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of obtaining licences, and inability to maintain the prescribed minimum capital unimpaired by losses.

"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 statement said.

The apex bank reiterated its commitment to maintaining a safe, sound and resilient financial system, adding that it would continue to take necessary supervisory and enforcement actions to sustain public confidence in the country's financial sector.

The development comes months after the CBN's banking recapitalisation programme. In March 2024, the regulator raised the minimum capital requirements for banks and gave them until March 31, 2026, to comply.

Recall that the CBN had announced on March 6, 2026, that 30 banks had successfully met the new capital thresholds.

The MFBs that had their operating licences revoked includes: Minji-Se Churchill (Rivers), Merchant (Abia), Janmaa (Kwara), Busu (Niger), Gold (Lagos), Zain (formerly Dawakin Tofa, Kano), Bompai (Kano), Ajwa (Kano), Now Now Digital (Kano), Crystabel (Bayelsa), Chanelle (Lagos), Abia SME (Abia), Kamba (Kebbi), Iwade (Ogun), Winview (Abuja), Zuru (Kebbi), Minjibir (Kano), Shanono (Kano), Sumaila (Kano), Rimin Gado (Kano), Mwaghavul (Plateau), Sycamore (Kano), TOFA (Kano), Safegate (Lagos), Creekline (Delta), Bestar (Oyo), Livingspring (Cross River), Apple (Ogun), Stanford (Akwa Ibom/Uyo), Frontline (Anambra), Zafec (Kaduna), Supreme (Lagos), Bejin-Doko (Niger), Kanopoly (Kano), Bellbank (formerly Tsanyawa, Kano), Yeneng (Plateau), Creditville (Lagos), MBAG (Lagos), Straight Sahara (Benue), Our Pass (Ondo), VERDANT (Lagos), Basawa (Kaduna), Casha (Abuja), Esteem (Kano), Enterpreneur (Lagos) and Avantus (Osun).