CBN Tightens Oversight, Withdraws Operating Licences of 46 Microfinance Banks

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country in a fresh regulatory action aimed at strengthening the stability and integrity of Nigeria’s financial system.

The decision, which took effect on July 1, 2026, was approved by CBN Governor Olayemi Cardoso under the powers conferred on the apex bank by Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

In a statement issued by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali, the regulator said the affected institutions failed to meet the conditions required for continued operation as licensed financial institutions.

According to the CBN, the licences were withdrawn after the banks were found to have committed one or more regulatory breaches, including maintaining insufficient assets to meet liabilities, shutting down operations without regulatory approval, remaining inactive and ceasing financial intermediation, failing to commence business within 12 months of receiving their licences, and falling below the minimum capital requirements due to accumulated losses.

The apex bank explained that the latest enforcement action forms part of its broader supervisory strategy to protect depositors, improve confidence in the financial sector and ensure that licensed financial institutions comply with existing banking laws and prudential standards.

“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,” the statement said.

Among the institutions affected are Now Now Digital Microfinance Bank, Creditville Microfinance Bank, Gold Microfinance Bank, Merchant Microfinance Bank, Entrepreneur Microfinance Bank, Verdant Microfinance Bank, Supreme Microfinance Bank, Safegate Microfinance Bank, and Minji-Se Churchill Microfinance Bank, alongside 37 others listed in the revocation order.

The CBN has published the complete list of the 46 affected microfinance banks as part of the revocation order, underscoring its resolve to enforce compliance across Nigeria’s banking industry and maintain public confidence in the country’s financial system.