The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks across the country in a sweeping regulatory action aimed at strengthening the nation’s financial system and ensuring strict compliance with banking regulations. The decision, which took effect on July 1, 2026, was approved by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, following the affected institutions’ failure to meet the conditions required to continue operating as licensed financial institutions.
According to the apex bank, the revocation was carried out under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empower the CBN to withdraw the licences of financial institutions that fail to satisfy regulatory standards. The affected banks were found to have committed one or more serious breaches, including insufficient assets to meet liabilities, failure to maintain the required minimum capital, prolonged inactivity, closure of operations without regulatory approval, and failure to commence business within the stipulated period after obtaining licences.
The CBN explained that the action forms part of its ongoing efforts to safeguard the stability of Nigeria’s financial sector, protect depositors, and restore public confidence in licensed financial institutions. The regulator stressed that only institutions that comply with prudential guidelines and operational requirements should be allowed to remain in business, adding that continued enforcement of regulatory standards is essential for a safe, sound and resilient banking system. ..READ THE FULL ARTICLE HERE .
The list of affected institutions cuts across several states and includes both conventional and digital microfinance banks. Among them are NOW NOW Digital Microfinance Bank, Sycamore Microfinance Bank, Creditville Microfinance Bank, Apple Microfinance Bank, Gold Microfinance Bank, Merchant Microfinance Bank, OurPass Microfinance Bank, Safegate Microfinance Bank and several others that failed to satisfy the apex bank’s licensing requirements.
Industry analysts say the latest move underscores the CBN’s determination to tighten supervision of financial institutions and enforce greater discipline within the banking sector. They believe the exercise is intended to eliminate weak and non-compliant operators while ensuring that customers’ funds remain protected through stronger regulatory oversight.
The Central Bank reaffirmed its commitment to promoting a stable and resilient financial system, assuring Nigerians that it will continue to take appropriate supervisory and enforcement actions whenever necessary to preserve the integrity of the country’s banking industry and maintain public trust in licensed financial institutions.
