The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing their failure to meet key regulatory requirements for continued operations.
Penpushing reports that Governor of Central Bank of Nigeria (CBN) Olayemi Cardoso gave the revocation order which took effect from July 1, 2026, as contained in a statement issued on Wednesday and signed by its Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement stated that the action was taken in line with the powers conferred on the Central Bank of Nigeria (CBN) under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.
“The Central Bank of Nigeria has revoked the operating licenses of forty-six (46) Microfinance Banks with effect from 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.
Penpushing further reports that the apex bank explained that the revocation was approved after the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.
“The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” it stated.
Penpushing also reports that the regulator explained that the decision became necessary because one or more of several infractions were established against the affected institutions.
The statement said these included insufficient assets to meet liabilities, closure of operations without the approval of the apex bank, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving licences and failure to maintain the prescribed minimum capital unimpaired by losses.
Penpushing reports that the affected lenders 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.
The list includes Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank and NOW NOW Digital Microfinance Bank.
Penpushing further reports that several Kano-based institutions were also affected, including Bompai Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, TOFA Microfinance Bank, Kanopoly Microfinance Bank and Esteem Microfinance Bank.
The Central Bank of Nigeria(CBN) emphasized that the measure forms part of its broader efforts to strengthen financial sector stability and enforce compliance with existing laws.
“The revocation of the licenses 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 added.
Penpushing also reports that the apex bank reaffirming its commitment to financial system stability, said it would continue to take supervisory and regulatory actions where necessary.
“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 said.
Penpushing reports that earlier, Nigeria Deposit Insurance Corporation (NDIC) said that more than 281 million depositors across the country’s banking system are protected against bank failure, following reforms that significantly expanded deposit insurance coverage and accelerated reimbursement of customers of failed banks.
The Managing Director and Chief Executive Officer of the corporation, Thompson Sunday, disclosed this recently during the second quarter 2026 Citizens and Stakeholders’ Engagement Session organised by the Federal Ministry of Finance in Abuja.
Penpushing further reports that Sunday, explained that the corporation currently provides deposit insurance coverage across 914 licensed financial institutions, while over 98 per cent of depositors are fully insured for their entire balances following the upward review of deposit insurance limits in May 2024.
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