CBN Unleashes Regulatory Hammer: 46 Microfinance Banks Lose Licences Amidst Financial Sector Overhaul
The Central Bank of Nigeria (CBN) has decisively withdrawn the operational licences of 46 microfinance banks, a significant regulatory action effective July 1, 2026. This move underscores the apex bank’s intensified commitment to fortifying oversight within Nigeria’s financial landscape and ensuring the stability and integrity of its banking sector.
The directive, sanctioned by CBN Governor Olayemi Cardoso, was formally communicated in a statement signed by Hakama Sidi-Ali, Acting Director of Corporate Communications. The revocations were executed under the stringent provisions of the Banks and Other Financial Institutions Act (BOFIA), 2020, signalling a robust enforcement of regulatory standards.
Investigations by the CBN revealed that the affected institutions failed to meet critical operational and financial benchmarks necessary for licence retention. Specific grounds for revocation included insufficient assets to cover financial obligations, cessation of operations or abandonment of services without requisite regulatory approval, failure to commence operations within the stipulated one-year period post-licensing, and non-adherence to minimum capital requirements.
This enforcement action is a direct manifestation of the CBN’s strategic objective to maintain a financial ecosystem populated by institutions that are not only financially sound but also impeccably managed. The regulator reiterated that the protection of depositors and the preservation of public confidence in the financial system remain paramount priorities. The CBN affirmed its ongoing vigilance over licensed financial institutions and its unwavering resolve to impose sanctions on any operator found in breach of existing regulations.
The 46 microfinance banks whose licences have been revoked are:
1. Minji-Se Churchill MFB (Tier 1) – Rivers State
2. Merchant MFB (Tier 2) – Abia State
3. Janmaa MFB (Tier 1) – Kwara State
4. Busu MFB (Tier 2) – Niger State
5. Gold MFB (Tier 1) – Lagos State
6. Zain MFB (formerly Dawakin Tofa MFB) (Tier 2) – Kano State
7. Bompai MFB (Tier 1) – Kano State
8. Ajwa MFB (Tier 2) – Kano State
9. Now Now Digital MFB (Tier 2) – Kano State
10. Crystabel Microfinance Bank (Tier 1) – Bayelsa State
11. Chanelle MFB (State-based) – Lagos State
12. Abia SME MFB (Tier 1) – Abia State
13. Kamba MFB (Tier 2) – Kebbi State
14. Iwade MFB (Tier 2) – Ogun State
15. Winview MFB (Tier 1) – Abuja (FCT)
16. Zuru MFB (Tier 2) – Kebbi State
17. Minjibir MFB (Tier 1) – Kano State
18. Shanono MFB (Tier 2) – Kano State
19. Sumaila MFB (Tier 2) – Kano State
20. Rimin Gado MFB (Tier 2) – Kano State
21. Mwaghavul MFB (State-based) – Plateau State
22. Sycamore MFB (Tier 2) – Kano State
23. TOFA MFB (Tier 2) – Kano State
24. Safegate MFB (Tier 1) – Lagos State
25. Creekline MFB (Tier 2) – Delta State
26. Bestar MFB (Tier 1) – Oyo State
27. Livingspring MFB (Tier 1) – Cross River State
28. Apple MFB (Tier 2) – Ogun State
29. Stanford MFB (State-based) – Uyo, Akwa Ibom State
30. Frontline MFB (Tier 2) – Anambra State
31. Zafec MFB (Tier 2) – Kaduna State
32. Supreme MFB (Tier 1) – Lagos State
33. Bejin-Doko MFB (Tier 2) – Niger State
34. Kanopoly MFB (Tier 1) – Kano State
35. Bellbank MFB (formerly Tsanyawa MFB) (Tier 2) – Kano State
36. Yeneng MFB (Tier 2) – Plateau State
37. Creditville MFB (Tier 1) – Lagos State
38. MBAG MFB (Tier 1) – Lagos State
39. Straight Sahara MFB (Tier 1) – Benue State
40. Our Pass MFB (Tier 2) – Ondo State
41. VERDANT MFB (Tier 1) – Lagos State
42. Basawa MFB (Tier 2) – Kaduna State
43. Casha MFB (Tier 2) – Abuja (FCT)
44. Esteem MFB (Tier 2) – Kano State
45. Enterpreneur MFB (Tier 1) – Lagos State
46. Avantus MFB (Tier 2) – Osun State
This decisive action follows the CBN’s intensified banking sector recapitalisation programme, which mandated higher minimum capital requirements for banks with a compliance deadline of March 31, 2026. By March 6, 2026, the CBN had confirmed that 30 banks had successfully met these new capital thresholds. The current wave of licence revocations underscores the regulator’s unwavering resolve to enforce compliance across the entire financial sector, ensuring that all operating institutions are stable, adequately capitalised, and fully capable of safeguarding customer funds. This regulatory posture is critical for legal professionals, compliance officers, and corporate executives navigating the evolving Nigerian financial services landscape.
