Lagos, Kano Lead as CBN Revokes 46 Microfinance Banks’ Licences
The CBN revoked licences of 46 microfinance banks after regulatory breaches, citing financial stability and stronger depositor protection efforts.
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, with Lagos and Kano accounting for the largest number of affected institutions, in a move aimed at strengthening financial sector stability and protecting depositors.
The apex bank announced that the revocation takes effect from July 1, 2026, following the approval of the Governor of the CBN, Mr. Olayemi Cardoso. The action was taken in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, after the affected institutions failed to meet the regulatory requirements for continued operation.
According to the CBN, the licences were withdrawn due to one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without prior approval, prolonged inactivity, failure to commence operations within 12z months of obtaining licences, and failure to maintain the minimum capital required for licensed financial institutions.
An analysis of the list released by the apex bank shows that Lagos and Kano recorded the highest number of affected microfinance banks. Institutions in Lagos include Gold MFB, Chanelle MFB, Safegate MFB, Supreme MFB, Creditville MFB, MBAG MFB, Verdant MFB and Entrepreneur MFB. Kano also accounted for several affected lenders, including Zain MFB, Bompai MFB, Ajwa MFB, Now Now Digital MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Sycamore MFB, Tofa MFB, Kanopoly MFB, Bellbank MFB and Esteem MFB.
Other affected institutions are spread across states including Abia, Niger, Kebbi, Ogun, Bayelsa, the Federal Capital Territory, Plateau, Delta, Oyo, Cross River, Anambra, Kaduna, Benue, Ondo, Osun and Akwa Ibom.
The CBN said the enforcement action forms part of its ongoing supervisory efforts to ensure that licensed financial institutions comply with existing laws and prudential standards while preserving confidence in Nigeria’s financial system.
“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 CBN said.
