CBN Withdraws Licences of 46 Microfinance Banks in Regulatory Enforcement Drive

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks nationwide as part of efforts to strengthen regulatory compliance and maintain the stability of the financial system.

The decision, which became effective on July 1, 2026, was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, according to a statement issued by the apex bank's Acting Director of Corporate Communications, Hakama Sidi-Ali.

The CBN explained that the affected institutions failed to satisfy critical operational and regulatory standards required for the continued operation of licensed financial institutions in the country.

According to the regulator, investigations revealed various compliance deficiencies among the affected banks, including weak financial positions, inability to meet obligations, prolonged dormancy, unauthorized cessation of operations, failure to commence business activities within the stipulated timeframe after licensing, and non-compliance with minimum capital requirements.

The affected institutions span several states of the federation and include Tier 1, Tier 2, and State Microfinance Banks operating in Lagos, Kano, the Federal Capital Territory, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo, and Anambra states.

Notable institutions affected by the revocation include Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank, and NOW NOW Digital Microfinance Bank.

A number of microfinance banks operating in Kano State were also impacted, among them Bompai Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, TOFA Microfinance Bank, Kanopoly Microfinance Bank, and Esteem Microfinance Bank.

The apex bank noted that the exercise forms part of broader reforms aimed at promoting financial discipline, strengthening public confidence in the banking sector, and ensuring that licensed institutions operate within established regulatory frameworks.

Financial experts say the action reflects the CBN's commitment to maintaining a sound and resilient financial system by removing institutions that are unable to meet prescribed standards and obligations.

The regulator reaffirmed its determination to continue monitoring financial institutions and enforcing compliance measures necessary to protect depositors and preserve the integrity of Nigeria's banking industry.

— Poet of Afrique Reporters

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