Lagos, Kano Hardest Hit as CBN Revokes Licences of 46 Microfinance Banks

Pat Stevens/

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country in one of the biggest regulatory actions against the sub sector in recent years, citing widespread failure to meet statutory requirements for continued operation.

The revocation, which took effect from July 1, 2026, was approved by the Governor of the Central Bank of Nigeria, Mr Olayemi Cardoso, in exercise of the powers conferred on the apex bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

In a statement signed by the Acting Director of Corporate Communications, Mrs Hakama Sidi Ali, the CBN said the affected institutions failed to satisfy the regulatory conditions required of licensed financial institutions.

According to the apex bank, the decision became necessary because one or more of the affected banks had insufficient assets to meet their liabilities, shut down operations without regulatory approval, ceased financial intermediation, failed to commence operations within 12 months of obtaining their licences, or could no longer maintain the minimum capital required for continued operation.

The CBN said the measure is part of its ongoing efforts to strengthen financial system stability, protect depositors and ensure strict compliance with banking laws and prudential regulations.

“The revocation of the licences is part of the Bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors and ensure that licensed institutions comply with current laws and regulatory requirements,” the statement said.

The regulator added that it remains committed to promoting a safe, sound and resilient financial system and will continue to take supervisory and enforcement actions where necessary to sustain public confidence in Nigeria’s banking industry.

The affected institutions are spread across virtually every geopolitical zone, underscoring the nationwide scope of the regulatory action.

They include Minji-Se Churchill Microfinance Bank in Rivers State, Merchant Microfinance Bank and Abia SME Microfinance Bank in Abia State, Janmaa Microfinance Bank in Kwara State, Busu Microfinance Bank and Bejin-Doko Microfinance Bank in Niger State, Gold Microfinance Bank, Chanelle Microfinance Bank, Safegate Microfinance Bank, Supreme Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Verdant Microfinance Bank and Entrepreneur Microfinance Bank in Lagos State.

Also affected are Zain Microfinance Bank, formerly Dawakin Tofa Microfinance Bank, Ajwa Microfinance Bank, formerly Gezawa Microfinance Bank, Bompai Microfinance Bank, Now Now Digital Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, Tofa Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank, formerly Tsanyawa Microfinance Bank, and Esteem Microfinance Bank, all located in Kano State.

The list also includes Crystabel Microfinance Bank in Bayelsa State, Kamba Microfinance Bank and Zuru Microfinance Bank in Kebbi State, Iwade Microfinance Bank and Apple Microfinance Bank in Ogun State, Winview Microfinance Bank and Casha Microfinance Bank in the Federal Capital Territory, Mwaghavul Microfinance Bank and Yeneng Microfinance Bank in Plateau State, Creekline Microfinance Bank in Delta State, Bestar Microfinance Bank in Oyo State, Livingspring Microfinance Bank in Cross River State, Stanford Microfinance Bank in Akwa Ibom State, Frontline Microfinance Bank in Anambra State, Zafec Microfinance Bank and Basawa Microfinance Bank in Kaduna State, Straight Sahara Microfinance Bank in Benue State, OurPass Microfinance Bank in Ondo State, and Avantus Microfinance Bank in Osun State.

A breakdown of the list shows that Lagos recorded the highest number of licence revocations, followed closely by Kano, while institutions in Rivers, Abia, Kwara, Niger, Bayelsa, Kebbi, Ogun, Plateau, Delta, Oyo, Cross River, Akwa Ibom, Anambra, Kaduna, Benue, Ondo, Osun and the Federal Capital Territory were also affected.

The revoked licences cut across Tier 1, Tier 2 and State Microfinance Banks, indicating that the enforcement action was based on regulatory compliance rather than the category or size of the institutions.

The latest development highlights the CBN’s continuing drive under Cardoso to tighten regulatory oversight, strengthen corporate governance, improve capital adequacy and reinforce confidence in Nigeria’s financial system.

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