CBN revokes licences of 46 Microfinance Banks nationwide
By Onu Okorie
The Central Bank of Nigeria CBN has revoked the operating licences of 46 microfinance banks MFBs across the country, effective July 1, 2026. A statement made available in Abuja by CBN, cited widespread failure to meet regulatory requirements for licensed financial institutions as the reason behind the action.
Approved by the CBN Governor, Mr. Olayemi Cardoso, the apex bank said the action was taken under its powers as spelled out in 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 CBN said the affected institutions fell short in one or more of five key regulatory areas: insufficient assets to cover liabilities; unauthorised closure of operations; prolonged inactivity and cessation of financial intermediation; failure to commence operations within 12 months of licence approval; and failure to maintain minimum capital funds unimpaired by losses.
The affected banks span at least 20 states, with a notable concentration in Kano State, which alone accounted for more than a dozen of the revoked licences, including Bompai MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Sycamore MFB, TOFA MFB, Esteem MFB, and Kanopoly MFB. Lagos State also recorded a significant number of casualties, among them Gold MFB, Chanelle MFB, Safegate MFB, Supreme MFB, Creditville MFB, MBAG MFB, Verdant MFB and Enterprenuer MFB.
Other states affected include Rivers, Abia, Kwara, Niger, Bayelsa, Kebbi, Ogun, Abuja FCT, Plateau, Delta, Oyo, Cross River, Akwa Ibom, Anambra, Kaduna, Benue, Ondo and Osun.
Some of the banks had previously undergone rebranding before their licences were pulled, including Zain MFB formerly Dawakin Tofa MFB, Ajwa MFB, formerly Gezawa MFB, and Bellbank MFB, formerly Tsanyawa MFB.
The CBN described the mass revocation as part of its continued drive to safeguard the stability of Nigeria’s financial sector and protect depositors’ funds. “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 read.
The apex bank reaffirmed its commitment to maintaining a safe, sound and resilient financial system, warning that it would continue to take appropriate supervisory and regulatory action against non-compliant institutions.
“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.
The development is the latest in a series of clean-up exercises the CBN has carried out in the microfinance banking subsector in recent years, as the regulator moves to weed out weak and non-performing institutions from the financial system.
