The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs), citing persistent regulatory breaches and failure to meet statutory requirements under the country’s banking laws.
The revocations, which took effect on July 1, 2026, were approved by CBN Governor Olayemi Cardoso pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act 2020.
In a statement issued by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank said the affected institutions failed to satisfy critical regulatory conditions required to retain their banking licences.
According to the regulator, the infractions included insufficient assets to meet liabilities, closure of operations without prior CBN approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of obtaining a licence, and inability to maintain the minimum capital requirements after accounting for losses.
The CBN said the enforcement action forms part of its ongoing efforts to strengthen regulatory compliance, protect depositors and preserve the stability of Nigeria’s financial system.
Affected Microfinance Banks
Microfinance banks are a key pillar of Nigeria’s financial inclusion strategy, providing savings, credit and other banking services to low-income households, small businesses and underserved communities.
By removing institutions that are no longer financially viable or operational, the CBN said it aims to ensure that only sound and compliant operators remain in the sector.
Among the affected institutions are Gold Microfinance Bank, Safegate Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Verdant Microfinance Bank and Entrepreneur Microfinance Bank in Lagos; Merchant Microfinance Bank and Abia SME Microfinance Bank in Abia; several Kano-based lenders including Bompai, Minjibir, Kanopoly, Sycamore, Tofa, Shanono, Sumaila, Rimin Gado and Esteem Microfinance Banks; as well as institutions across Rivers, Kwara, Niger, Ogun, Plateau, Kebbi, Kaduna, Oyo, Cross River, Anambra, Bayelsa, Delta, Ondo, Benue, Osun and the Federal Capital Territory.
The CBN reaffirmed its commitment to maintaining a safe, resilient and well-regulated financial system, stressing that it will continue to deploy supervisory and enforcement measures where necessary to sustain public confidence in the banking sector.
