The Central Bank of Nigeria (CBN) has cancelled 46 microfinance banks’ operating licenses in the country. This is with immediate effect. The reason for the cancellation is based on the persistent regulatory breaches by these banks and failure to satisfy minimum statutory requirements to continue as a microfinance bank in Nigeria.
The CBN governor, Olayemi Cardoso, in exercise of the powers conferred upon him by section 12 and 13 of Banks and Other Financial Institutions Act (BOFIA), 2020 approved the revocation with effect from July 1, 2026.
The central bank disclosed this was part of efforts to ensure financial system stability, protect depositors and maintain standards among licensed institutions as stipulated by extant law and regulations.
ALSO READ: Fuel Marketers Threaten Nationwide Shutdown Over Planned Petrol Price Controls
A statement from the apex bank, signed by the Acting Director, Corporate Communications, Hakama Sidi-Ali, indicated the identified breaches included the absence of realizable assets to meet its liabilities, closure of its premises without authorization of the CBN, ceasing of financial intermediation, non-commencement of operations within the statutory 12 months after license issuance, and operating below its statutory minimum capital requirement without being impaired.
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks after finding persistent regulatory violations, including inadequate capital, insolvency, operational failures and prolonged inactivity. The affected institutions are: Gold Microfinance Bank, Creditville Microfinance Bank, NOW NOW Digital Microfinance Bank, Apple Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank, OurPass Microfinance Bank, Verdant Microfinance Bank, Avantus Microfinance Bank, Entrepreneur Microfinance Bank, Frontline Microfinance Bank, Winview Microfinance Bank, Crystabel Microfinance Bank, Supreme Microfinance Bank, 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, Esteem Microfinance Bank, Minji-Se Churchill Microfinance Bank, Nurture Microfinance Bank, Ahmadu Bello Microfinance Bank, Madobi Microfinance Bank, Manya Microfinance Bank, MAMS Microfinance Bank, Bay Microfinance Bank, Benue Microfinance Bank, Cross River Microfinance Bank, Delta Trust Microfinance Bank, Kebbi Microfinance Bank, Ilorin Microfinance Bank, Oke-Ogun Microfinance Bank, Ijebu-Ode Microfinance Bank, Ondo Microfinance Bank, Osogbo Microfinance Bank, Anambra Microfinance Bank, Unity Community Microfinance Bank, Reliable Microfinance Bank, Excellent Microfinance Bank, Progressive Microfinance Bank, Trust field Microfinance Bank and Capital Express Microfinance Bank.
The apex bank said the action was taken to safeguard the stability of Nigeria’s financial system and protect depositors by ensuring that only sound and compliant financial institutions remain in operation.
The CBN stated that the recent regulatory enforcement action re-affirms the bank’s ongoing efforts to clean up Nigeria’s microfinance banking industry by taking out entities that no longer meet the requisite regulatory and financial requirements.
ALSO READ:
- Sanwo-Olu Approves Dredging of 28 Drainage Channels After Flooding Hits Lagos
- FG to Seek Compensation for Nigerians’ Abandoned Businesses in South Africa
- FG to Seek Compensation for Nigerians’ Abandoned Businesses in South Africa
- EU Imposes €3 Fee on Low-Value Chinese Imports, Targets Shein, Temu, AliExpress
It added that it remains the firm belief of the Central Bank that only strong, compliant financial institutions are in a position to effectively serve low income households, small businesses and communities that lack access to financial services.
Reiterating its commitment to preserve the safety and soundness of the Nigerian banking system, and public confidence in it, the bank stated that it shall continue to take appropriate regulatory and supervisory actions when necessary to promote and ensure a safe, sound and resilient financial sector.
