In a sweeping regulatory action aimed at strengthening confidence in Nigeria’s financial system, the Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks over persistent regulatory breaches and failure to meet key operational requirements.
The decision, which took effect on July 1, 2026, was approved by the Governor of the Central Bank, Olayemi Cardoso, under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to the apex bank, the affected institutions failed to comply with critical prudential and operational standards necessary for licensed financial institutions to remain in business. The move forms part of ongoing efforts to protect depositors and maintain stability within the financial sector.
In a statement issued by the Acting Director of Corporate Communications, Sidi-Ali Hakama, the CBN explained that investigations revealed several infractions among the affected banks. These included inadequate assets to meet liabilities, prolonged inactivity, closure of operations without regulatory approval, failure to commence business within the stipulated period after licensing, and inability to maintain the statutory minimum capital requirement.
The central bank stressed that allowing such institutions to continue operating would pose risks to customers and undermine confidence in the financial system.
“The action is part of the CBN’s commitment to ensuring that only financially sound and compliant institutions operate within the banking sector,” the statement noted.
The regulator further reassured the public that it would continue to monitor financial institutions closely and deploy appropriate supervisory measures to safeguard the banking industry from systemic risks.
Among the microfinance banks affected by the revocation are Minji-Se Churchill Microfinance Bank, Merchant Microfinance Bank, Janmaa Microfinance Bank, Gold Microfinance Bank, Bompai Microfinance Bank, Crystabel Microfinance Bank, Apple Microfinance Bank, Stanford Microfinance Bank, Creditville Microfinance Bank, Sycamore Microfinance Bank, and Entrepreneur Microfinance Bank.
Others include Now Now Digital Microfinance Bank, Ourpass Microfinance Bank, Avantus Microfinance Bank, Livingspring Microfinance Bank, Creekline Microfinance Bank, Bellbank Microfinance Bank, and several others spread across different parts of the country.
Industry analysts say the development signals the CBN’s renewed determination to enforce compliance and ensure that only institutions with sufficient capital, sound governance structures, and sustainable operations remain active in Nigeria’s financial ecosystem.
The revocation comes amid broader efforts by the apex bank to strengthen regulatory oversight, improve financial sector resilience, and protect customers from the risks associated with weak or distressed financial institutions.
