Apex Bank Cancels Licences of 46 Microfinance Lenders for Regulatory Failures

Nigeria's Central Bank (CBN) has withdrawn the operational permits of 46 microfinance institutions nationwide. This move stems from their inability to adhere to crucial regulatory standards necessary for ongoing business. The apex financial regulator announced this development in a statement released on Wednesday, bearing the signature of Hakama Sidi-Ali, the Acting Director of Corporate Communications. This revocation, effective July 1, 2026, was sanctioned by the CBN Governor, Olayemi Cardoso.

The statement clarified that the decision aligns with the authority granted to the CBN by Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020. It quoted, “The Central Bank of Nigeria has revoked the operating licenses of forty-six (46) Microfinance Banks with effect from July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.”

The CBN further explained that the approval for this revocation came after these institutions failed to fulfill the necessary regulatory criteria to remain licensed financial entities. The statement explicitly mentioned, “The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions.”

The financial watchdog elaborated that this drastic step was necessitated by the discovery of multiple infractions against the institutions in question. These infringements encompassed having inadequate assets to cover their liabilities, ceasing operations without prior CBN consent, extended periods of dormancy and discontinuation of financial intermediation, failing to begin operations within a year of obtaining their licenses, and neglecting to uphold the mandated minimum capital requirement free from losses.

The list of impacted lenders includes Tier 1, Tier 2, and State microfinance banks operating in various states such as Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo, and Anambra.

Specific institutions on the list include Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank, and NOW NOW Digital Microfinance Bank. Additionally, a number of Kano-based banks, such as 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, and Esteem Microfinance Bank, are also affected.

This action, according to the CBN, is a component of its wider strategy aimed at enhancing the stability of the financial sector and ensuring adherence to current legal frameworks. The statement reiterated, “The revocation of the licenses 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 CBN reaffirmed its dedication to a stable financial system, stating its intention to persist with necessary supervisory and regulatory interventions. As quoted in the statement, “The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system.”

In a related development, the Nigeria Deposit Insurance Corporation (NDIC) previously announced that over 281 million depositors within Nigeria's banking sector are now safeguarded against bank collapses. This protection follows reforms that substantially broadened deposit insurance coverage and expedited the reimbursement process for customers of defunct banks. Thompson Sunday, the NDIC's Managing Director and Chief Executive Officer, shared this information recently at the second quarter 2026 Citizens and Stakeholders’ Engagement Session hosted by the Federal Ministry of Finance in Abuja. Sunday further stated that the corporation currently extends deposit insurance to 914 licensed financial institutions, with more than 98 percent of depositors enjoying full insurance for their complete account balances, a result of the increased deposit insurance limits implemented in May 2024.