The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs) with effect from July 1, 2026, citing persistent regulatory violations, insolvency and failure to meet the conditions required to operate as licensed financial institutions.
The action, approved by CBN Governor Olayemi Cardoso, was taken pursuant to Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, according to a statement issued by the apex bank.
The CBN said the affected institutions failed to satisfy the regulatory standards necessary for continued operation and that the decision forms part of its broader efforts to strengthen the stability of Nigeria’s financial system and protect depositors.
According to the regulator, the licences were revoked for several reasons, including insufficient assets to meet liabilities, closure of banking operations without regulatory approval, prolonged inactivity, failure to commence operations within 12 months of receiving licences and failure to maintain the minimum capital requirements prescribed by law.
The list of affected institutions includes microfinance banks across different licence categories and states of the federation.
Several banks, including Minji-Se Churchill Microfinance Bank, Merchant Microfinance Bank, Gold Microfinance Bank, Bompai Microfinance Bank and Now Now Digital Microfinance Bank, were sanctioned for shutting down operations without obtaining the approval of the Central Bank.
Others, such as Chanelle Microfinance Bank, Abia SME Microfinance Bank, Winview Microfinance Bank, Safegate Microfinance Bank and Creekline Microfinance Bank, were found to have ceased active financial intermediation despite commencing operations.
The CBN also identified a number of insolvent institutions, including Bestar Microfinance Bank, Apple Microfinance Bank, Supreme Microfinance Bank, Creditville Microfinance Bank, Kanopoly Microfinance Bank and several others that were no longer financially capable of meeting their obligations.
In addition, the regulator revoked the licences of institutions that never commenced business after receiving regulatory approval. These include MBAG Microfinance Bank, Verdant Capital Microfinance Bank, Entrepreneur Microfinance Bank, Avantus Microfinance Bank, OurPass Microfinance Bank and Casha Microfinance Bank, among others.
The apex bank said the latest enforcement action reflects its commitment to ensuring that only financially sound and operationally compliant institutions remain within Nigeria’s banking system.
According to the CBN, maintaining effective supervision of licensed financial institutions is critical to preserving confidence in the financial sector and ensuring that depositors are adequately protected.
The regulator added that it will continue to monitor banks and other financial institutions closely and will not hesitate to take appropriate supervisory or enforcement measures where institutions fail to comply with applicable laws, prudential standards or licensing conditions.
The revocation is one of the largest single actions taken against microfinance banks in recent years and signals the CBN’s determination to strengthen governance, improve financial stability and enhance public trust in Nigeria’s financial system.
