CBN Withdraws Licences of 46 Microfinance Banks

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks, saying the affected institutions failed to meet conditions required to remain in business.

The decision, which took effect on July 1, 2026, was announced in a statement issued by the apex bank’s Acting Director of Corporate Communications, Hakama Sidi.

According to the CBN, the action was taken under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, following the approval of Governor Olayemi Cardoso.

The regulator explained that examinations of the affected institutions revealed various compliance failures, making it necessary to withdraw their licences.

It identified several factors behind the decision, including weak financial positions that left some banks unable to meet their obligations, discontinuation of operations without regulatory approval, prolonged inactivity, failure to begin operations within one year of obtaining licences, and erosion of statutory capital by accumulated losses.

The affected institutions cut across different categories of microfinance banks and are spread across several states of the federation. Kano accounts for the highest number on the list, while Lagos, Ogun, Kaduna, Plateau, Kebbi, Rivers, Delta, Abia, Bayelsa, Benue, Cross River, Ondo, Osun, Oyo, Niger, Anambra, the Federal Capital Territory and Akwa Ibom also have affected institutions.

Among those whose licences were withdrawn are Minji-Se Churchill Microfinance Bank, Gold MFB, Creekline MFB, Creditville MFB, Entrepreneur MFB, Supreme MFB, Livingspring MFB, Merchant MFB, Bombai MFB, NOW NOW Digital MFB and Avantus MFB.

The CBN described the move as part of its broader supervisory measures aimed at strengthening confidence in Nigeria’s banking system.

It said enforcing regulatory standards remains essential to protecting depositors and ensuring that only institutions capable of meeting prudential requirements continue to operate.

The bank added that it would continue to take supervisory actions where necessary to promote a stable, resilient and well-regulated financial sector.