Reported by: Oahimire Omone Precious | Edited by: Oravbiere Osayomore Promise.
The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks across the country, citing their failure to meet key regulatory requirements for continued operation, in a decisive move aimed at strengthening the stability of Nigeria's financial sector and protecting depositors' funds.
The revocation, which takes effect from July 1, 2026, was approved by the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, in accordance with the powers conferred on the apex bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020. This was contained in a statement issued on Wednesday by the Acting Director of the Corporate Communications Department, Mrs Hakama Sidi-Ali.
According to the CBN, the affected institutions failed to satisfy the minimum conditions required to retain their licences as regulated financial institutions. The decision was necessitated by one or more serious regulatory infractions, including insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months after licence approval, and failure to maintain the prescribed minimum capital unimpaired by losses.
The latest regulatory action underscores the CBN's intensified oversight of the microfinance banking subsector as it seeks to improve corporate governance, strengthen capital adequacy, and enforce compliance with prudential standards. The affected institutions cut across several states and licence categories, including Tier 1, Tier 2 and State Microfinance Banks.
Among the affected lenders are Minji-Se Churchill Microfinance Bank in Rivers State, Merchant Microfinance Bank in Abia State, Janmaa Microfinance Bank in Kwara State, Busu Microfinance Bank in Niger State, Gold Microfinance Bank in Lagos State, and NOW NOW Digital Microfinance Bank in Kano State. Others include Creditville Microfinance Bank, Supreme Microfinance Bank, and Entrepreneur Microfinance Bank, all based in Lagos, as well as Winview Microfinance Bank in Abuja and Avantus Microfinance Bank in Osun State. The full list of the 46 affected institutions has been published by the CBN.
The apex bank explained that the action forms part of its ongoing supervisory measures aimed at strengthening the Nigerian financial system, safeguarding depositors' funds, and ensuring that licensed financial institutions comply with extant laws and prudential regulations. "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 read.
The CBN reaffirmed its commitment to maintaining a safe, sound and resilient financial system, adding that it would continue to deploy appropriate supervisory and regulatory measures against erring financial institutions whenever necessary to preserve public confidence in Nigeria's banking industry. "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.
Microfinance banks play a key role in extending banking services and credit to low-income households, small businesses and underserved communities across Nigeria. The revocation follows a broader push by the Cardoso-led central bank to enforce stricter compliance across the banking industry through enhanced supervision and governance standards.
The latest action highlights the challenges facing parts of Nigeria's microfinance banking industry, where some operators have struggled with weak capitalization, governance deficiencies and deteriorating asset quality amid a difficult operating environment marked by high inflation and elevated borrowing costs. The CBN has in recent years intensified regulatory scrutiny of the sector as it seeks to ensure that only financially sound institutions remain licensed to operate.
The revocation also comes amid a wider consolidation drive in the financial sector, as the CBN continues to enforce the recapitalisation policy announced in 2024, which required banks to meet new minimum capital thresholds by March 2026. While the policy primarily targeted commercial banks, the ongoing enforcement actions against microfinance banks reflect the regulator's determination to ensure that all categories of financial institutions operate with adequate capital buffers.
The CBN has urged depositors of the affected institutions to contact the Nigerian Deposit Insurance Corporation (NDIC) for information on the status of their deposits and the process for claiming their funds. The NDIC is expected to commence the liquidation and claims process in accordance with its statutory mandate.
As the financial sector continues to evolve under the Cardoso-led CBN, industry observers expect further regulatory actions against non-compliant institutions, as the apex bank seeks to build a more resilient banking system capable of supporting Nigeria's economic growth and development.
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