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 the minimum conditions required to continue operating as licensed financial institutions.
The revocation took effect on Wednesday, July 1, 2026, following the approval of the CBN Governor, Olayemi Cardoso.
The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, saying the action was taken in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
“The Central Bank of Nigeria (CBN) has revoked the operating licences of forty-six (46) Microfinance Banks with effect from Wednesday July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020),” the statement read.
According to the CBN, the decision followed supervisory assessments which found that the affected institutions no longer met the regulatory requirements for continued operation as licensed financial institutions.
“The revocation was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” the statement added.
The CBN explained that the decision became necessary because one or more serious regulatory infractions had been established against the affected banks.
According to the regulator, the infractions included insufficient assets to meet liabilities, closure of operations without obtaining the CBN’s approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months after obtaining licences, and failure to maintain the statutory minimum capital unimpaired by losses.
“According to the revocation order, the action became necessary because of one or more of the circumstances listed below: insufficient assets to meet liabilities; closure of operations without the CBN’s approval; inactivity and cessation of financial intermediation; failure to commence operations within 12 months of licence approval; and failure to maintain minimum capital funds unimpaired by losses,” the statement said.
The affected institutions comprise Tier 1, Tier 2 and State Microfinance Banks spread across several states, including Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra.
Among the banks affected are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank, NOW NOW Digital Microfinance Bank, Bompai Microfinance Bank and Entrepreneur Microfinance Bank.
The revocation represents one of the largest single regulatory actions against microfinance banks in recent years and forms part of the CBN’s broader efforts to strengthen financial sector stability, enforce compliance with banking regulations and protect depositors from the risks associated with weak and non-compliant financial institutions.
“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 apex bank stated.
Reaffirming its commitment to maintaining confidence in Nigeria’s banking industry, the CBN said it would continue to take decisive supervisory measures against institutions that fail to comply with regulatory standards.
“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement added.
Following the revocation, the affected microfinance banks immediately lost their authority to carry on banking business in Nigeria, paving the way for the Nigeria Deposit Insurance Corporation (NDIC) to commence the statutory liquidation process in line with existing financial laws.
The development is expected to protect insured depositors while ensuring an orderly resolution of the failed institutions.