By Feyisola Adeyeha
The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks with effect from July 1, 2026, in a move aimed at strengthening the country’s financial sector.
The action was approved by CBN Governor Olayemi Cardoso under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to a statement issued by Sidi-Ali Hakama, Acting Director of the Corporate Communications Department, the revocation became necessary because the affected banks failed to meet regulatory requirements for continued operation.
Specific reasons include insufficient assets to meet liabilities, closure of operations without CBN approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of license approval, and inability to maintain minimum capital funds unimpaired by losses.
The CBN described the decision as part of its 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 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 added.
Customers of the affected banks are advised to retain their account records and transaction documents. Further guidance on the verification and potential reimbursement of deposits is expected from the CBN and the Nigeria Deposit Insurance Corporation (NDIC) in due course.
The revoked banks include: Minji-Se Churchill MFB (Rivers), Merchant MFB (Abia), Janmaa MFB (Kwara), Busu MFB (Niger), Gold MFB (Lagos), Zain MFB (formerly Dawakin Tofa MFB, Kano), Bompai MFB (Kano), Ajwa MFB (formerly Gezawa, Kano), NOW NOW Digital MFB (Kano), Crystabel Microfinance Bank (Bayelsa), Chanelle MFB (Lagos), Abia SME MFB (Abia), Kamba MFB (Kebbi), Iwade MFB (Ogun), Winview MFB (Abuja), Zuru MFB (Kebbi), Minjibir MFB (Kano), Shanono MFB (Kano), Sumaila MFB (Kano), Rimin Gado MFB (Kano), Mwaghavul MFB (Plateau), Sycamore MFB (Kano), Tofa MFB (Kano), Safegate MFB (Lagos), Creekline MFB (Delta), Bestar MFB (Oyo), Livingspring MFB (Cross River), Apple MFB (Ogun), Stanford MFB (Akwa Ibom/Uyo), Frontline MFB (Anambra), Zafec MFB (Kaduna), Supreme MFB (Lagos), Bejin-Doko MFB (Niger), Kanopoly MFB (Kano), Bellbank MFB (formerly Tsanyawa MFB, Kano), Yeneng MFB (Plateau), Creditville MFB (Lagos), MBAG MFB (Lagos), Straight Sahara MFB (Benue), OurPass MFB (Ondo), Verdant MFB (Lagos), Basawa MFB (Kaduna), Casha MFB (Abuja), Esteem MFB (Kano), Entrepreneur MFB (Lagos), and Avantus MFB (Osun).
This latest cleanup of the microfinance sector underscores the challenges many smaller institutions face in maintaining capital adequacy and operational standards amid Nigeria’s economic environment. It reflects the CBN’s broader commitment to fostering a more robust and trustworthy financial system for Nigerians.
For the most current information, stakeholders are encouraged to consult official CBN and NDIC channels.
One Comment