The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks nationwide due to their inability to meet essential regulatory standards.
The enforcement, which officially took effect on July 1, 2026, was approved by CBN Governor Olayemi Cardoso and carried out under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to a statement issued by Hakama Sidi-Ali, the apex bank’s Acting Director of Corporate Communications, the affected financial institutions committed several critical infractions. These violations included holding insufficient assets to cover liabilities, shutting down operations without central bank approval, prolonged operational inactivity, failing to launch within a year of licensing, and allowing capital bases to be heavily eroded by persistent losses.
The affected lenders cut across Tier 1, Tier 2, and State-level microfinance categories. They span multiple states—including Lagos, Abuja, Rivers, Oyo, and Anambra—and feature notable names like Gold MFB, Creditville MFB, NowNow Digital MFB, and Supreme MFB. A significant number of Kano-based lenders were also affected, including Bompai, Minjibir, and Kanopoly microfinance banks.
The apex bank clarified that this clean-up is part of its ongoing strategy to protect depositors, enforce financial sector compliance, and preserve public trust in the country’s banking system. Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) has reassured the public regarding fund safety. NDIC Managing Director Thompson Sunday recently noted that following upward insurance reviews, more than 281 million depositors—representing over 98% of customers across 914 licensed institutions—are fully covered against bank closures.
