CBN revokes licences of 46 microfinance banks over regulatory breaches

The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks across the country with immediate effect, in a sweeping regulatory action effective July 1, 2026.

The decision, announced in an official statement by the apex bank, was taken under the powers conferred by the Banks and Other Financial Institutions Act 2020. The CBN said the action became necessary due to persistent regulatory violations and the failure of the affected institutions to meet required financial and operational standards designed to protect depositors’ funds.

The central bank outlined five key grounds for the revocation, stating that the affected institutions fell short under one or more of the following conditions:

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
v. Failure to maintain minimum capital funds unimpaired by losses

The CBN said the move forms part of its broader efforts to strengthen financial stability, protect depositors, and enforce compliance across the banking sector. It added that it remains committed to maintaining a safe and resilient financial system while continuing supervisory and regulatory interventions where necessary.

Affected microfinance banks

The revoked licences cover 46 institutions, including Minji-Se Churchill MFB, Merchant MFB, Janmaa MFB, Busu MFB, Gold MFB, Zain MFB (formerly Dawakin Tofa MFB), Bompai MFB, Ajwa MFB (formerly Gezawa), Now Now Digital MFB, Crystabel Microfinance Bank, Chanelle Microfinance Bank, Abia SME Microfinance Bank, Kamba MFB, Iwade MFB, Winview MFB, Zuru MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Mwaghavul MFB, Sycamore MFB, Tofa MFB, Safegate MFB, Creekline MFB, Bestar MFB, Livingspring MFB, Apple MFB, Stanford MFB, Frontline MFB, Zafec MFB, Supreme MFB, Bejin-Doko MFB, Kanopoly MFB, Bellbank MFB, Yeneng MFB, Creditville MFB, MBAG MFB, Straight Sahara MFB, Ourpass MFB, Verdant MFB, Basawa MFB, Casha MFB, Esteem MFB, Entrepreneur MFB and Avantus MFB.

With the revocation, the institutions are no longer permitted to carry out banking operations or accept deposits in Nigeria.

The CBN said the action followed several supervisory interventions, technical warnings and regulatory forbearance measures, which the affected banks failed to address with the required structural and financial reforms.

NDIC takes over liquidation process

To safeguard depositor interests and maintain confidence in the financial system, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as liquidator of the affected institutions.

The NDIC has taken over the assets of the banks and commenced immediate steps including asset recovery, verification of depositor claims, and coordination of insured deposit payouts within statutory limits.

Customers of the affected microfinance banks have been advised to remain calm and present valid account records, national identification and alternative banking details to support verification and reimbursement processes.

CBN signals tighter oversight

Analysts say the move underscores the regulator’s tougher stance on compliance within the microfinance banking sector, which has faced long-standing concerns over weak governance, risk management failures and insider abuses.

The CBN reiterated its commitment to enforcing strict capital adequacy, improved credit standards and stronger corporate governance across all financial institutions, including microfinance banks, mortgage institutions and development finance bodies.