The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing multiple regulatory breaches, including inadequate capital, inactivity and failure to comply with banking regulations.
The revocation, which took effect from July 1, 2026, was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, in accordance with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
In a statement signed by the Acting Director of
the Corporate Communications Department, Mrs Hakama Sidi-Ali, the apex bank
said the affected institutions failed to meet the regulatory requirements for
continued operation as licensed financial institutions.
According to the CBN, “The Central Bank of Nigeria
(CBN) has revoked the operating licences 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 added that “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.”
Explaining the reasons for the action, the apex
bank said the revocation became necessary because of one or more of the
following circumstances:
“i. Insufficient assets to meet liabilities; ii.
Closure of operations without the CBN approval; iii. Inactivity and cessation
of financial intermediation; iv. Failure to commence operations within 12
months of licence approval; and v. Failure to maintain minimum capital funds
unimpaired by losses.”
The CBN said the action forms part of its efforts
to strengthen the country’s financial system and protect depositors.
“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.
Reaffirming its commitment to financial sector
stability, the apex bank added: “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 affected institutions include 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, Zain Microfinance Bank (formerly
Dawakin Tofa Microfinance Bank) in Kano State, Bompai Microfinance Bank in Kano
State, Ajwa Microfinance Bank (formerly Gezawa Microfinance Bank) in Kano
State, NOW NOW Digital Microfinance Bank in Kano State, Crystabel Microfinance
Bank in Bayelsa State, Chanelle Microfinance Bank in Lagos State and Abia SME
Microfinance Bank in Abia State.
Others are Kamba Microfinance Bank in Kebbi State,
Iwade Microfinance Bank in Ogun State, Winview Microfinance Bank in the Federal
Capital Territory, Zuru Microfinance Bank in Kebbi State, Minjibir Microfinance
Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank and Rimin Gado
Microfinance Bank, all in Kano State, alongside Mwaghavul Microfinance Bank in
Plateau State, Sycamore Microfinance Bank in Kano State, Tofa Microfinance Bank
in Kano State, Safegate Microfinance Bank in Lagos State, Creekline
Microfinance Bank in Delta State and Bestar Microfinance Bank in Oyo State.
Also affected are Livingspring Microfinance Bank
in Cross River State, Apple Microfinance Bank in Ogun State, Stanford
Microfinance Bank in Akwa Ibom State, Frontline Microfinance Bank in Anambra
State, Zafec Microfinance Bank in Kaduna State, Supreme Microfinance Bank in
Lagos State, Bejin-Doko Microfinance Bank in Niger State, Kanopoly Microfinance
Bank in Kano State, Bellbank Microfinance Bank (formerly Tsanyawa Microfinance
Bank) in Kano State, Yeneng Microfinance Bank in Plateau State, Creditville
Microfinance Bank in Lagos State and MBAG Microfinance Bank in Lagos State.
The remaining institutions whose licences were
revoked are Straight Sahara Microfinance Bank in Benue State, OurPass
Microfinance Bank in Ondo State, Verdant Microfinance Bank in Lagos State,
Basawa Microfinance Bank in Kaduna State, Casha Microfinance Bank in the
Federal Capital Territory, Esteem Microfinance Bank in Kano State, Entrepreneur
Microfinance Bank in Lagos State and Avantus Microfinance Bank in Osun State.
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