The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing persistent regulatory breaches and failure to meet statutory requirements for continued operation. The action takes immediate effect as part of the apex bank’s efforts to strengthen financial sector stability.
The Central Bank of Nigeria (CBN) has announced the revocation of the operating licences of 46 microfinance banks (MFBs) with effect from July 1, 2026, following their failure to satisfy regulatory requirements for continued operation. The decision was approved by CBN Governor Olayemi Cardoso under the provisions of the Banks and Other Financial Institutions Act (BOFIA), 2020.
In a statement signed by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank said the affected institutions breached one or more key regulatory conditions required to retain their licences.
According to the CBN, the reasons for the revocation include:
- Insufficient assets to meet liabilities.
- Closure of operations without prior approval.
- Prolonged inactivity and cessation of financial intermediation.
- Failure to commence operations within 12 months of licence approval.
- Failure to maintain the statutory minimum capital due to accumulated losses.
Among the affected institutions are NOW NOW Digital MFB, Creditville MFB, Gold MFB, Merchant MFB, Safegate MFB, Verdant MFB, Entrepreneur MFB, Apple MFB, Frontline MFB and several others operating across multiple states.
The licence revocation forms part of the CBN’s ongoing regulatory clean-up of Nigeria’s financial sector aimed at protecting depositors, improving public confidence and ensuring that only financially sound institutions remain licensed.
The apex bank has in recent years intensified supervision of financial institutions, particularly microfinance banks, to strengthen compliance with prudential regulations and reduce systemic risks within the banking industry.
The CBN reaffirmed its commitment to maintaining a safe, sound and resilient financial system, stressing that it would continue taking supervisory and enforcement actions against institutions that fail to comply with regulatory standards.
The bank also noted that the revocation took effect immediately from July 1, 2026, in accordance with Sections 12 and 13 of BOFIA 2020.
The latest regulatory action marks one of the largest single licence withdrawals involving microfinance banks in recent years. Industry stakeholders will now be watching closely to see how the affected institutions wind down operations and how the CBN manages depositor protection and broader financial sector stability.