Full List: 46 Microfinance Banks Shut Down as CBN Revokes Licences

The Central Bank of Nigeria has revoked the operating licences of 46 Microfinance Banks. The revocation took effect on 1 July 2026.

The CBN announced the decision in a press statement on Tuesday. The statement was signed by Hakama Sidi-Ali. She is the Acting Director of the Corporate Communications Department.

The CBN Governor, Mr Olayemi Cardoso, approved the revocation. The action was taken under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020.

Why the Banks Were Shut Down

The CBN listed five reasons for the revocation. The banks failed to meet regulatory requirements for continued operation.

The circumstances included the following:

• Insufficient assets to meet liabilities.

• Closure of operations without CBN approval.

• Inactivity and cessation of financial intermediation.

• Failure to commence operations within 12 months of licence approval.

• Failure to maintain minimum capital funds unimpaired by losses.

The CBN said one or more of these reasons applied in each case.

What the CBN Said

The apex bank described the revocation as part of its ongoing regulatory efforts. It said the action was necessary to safeguard the financial sector.

The statement read: “The revocation of the licenses 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 also sought to reassure the public. It said it remains committed to a safe and resilient financial system.

“The Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement added.

46 Microfinance Banks Affected

The 46 banks are spread across several states. Lagos and Kano have the highest numbers.

A breakdown by state is as follows:

Lagos (7): Gold MFB, Safegate MFB, Supreme MFB, Creditville MFB, MBAG MFB, Verdant MFB, Entrepreneur MFB.

Kano (12): Zain MFB (formerly Dawakin Tofa MFB), Bompai MFB, Ajwa MFB (formerly Gezawa), NOW NOW DIGITAL MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Sycamore MFB, TOFA MFB, Kanopoly MFB, Bellbank MFB (formerly Tsanyawa), Esteem MFB.

Others: The remaining banks are located in Rivers, Abia, Kwara, Niger, Bayelsa, Kebbi, Ogun, Abuja, Plateau, Delta, Oyo, Cross River, Akwa Ibom, Anambra, Kaduna, Benue, Ondo, and Osun states.

Full List of Revoked Banks.

What This Means for Depositors

The Nigeria Deposit Insurance Corporation is expected to step in. The NDIC insures depositors of licensed banks.

Under the NDIC Act, depositors of microfinance banks are covered up to a maximum of N200,000 per account. This applies in the event of a bank failure.

Affected depositors should await further announcements from the NDIC. The corporation typically issues a verification process. This allows depositors to file claims and recover insured funds.

The CBN did not provide specific guidance for depositors in its Tuesday statement. But the NDIC usually follows up after licence revocations

A Pattern of Enforcement

This is not the first time the CBN has revoked licences en masse. In May 2023, the apex bank revoked the licences of 132 microfinance banks. It also shut down finance companies and mortgage banks at the time.

The current CBN leadership under Mr Cardoso has signalled a tougher regulatory stance. Several banks have faced sanctions in recent months. The goal, the CBN says, is to clean up the sector.

Weak banks, the regulator argues, pose a risk to the entire financial system. Revoking their licences is a preventive measure.

Financial analysts have largely supported the move. They say it strengthens the sector by removing weak players.

But some have expressed concern about the concentration of closures in certain states. Kano alone accounts for 12 of the 46 revoked licences. Lagos accounts for seven.

This may reflect the high number of microfinance banks operating in those states. It may also point to deeper structural issues in the microfinance sector.

The CBN has not commented on the geographical spread of the closures. It said only that the affected banks failed to meet regulatory requirements.

What the Law Says

Sections 12 and 13 of BOFIA 2020 give the CBN sweeping powers over licensed financial institutions.

Section 12 allows the CBN to revoke a licence if a bank fails to meet its obligations. It also applies if the bank ceases to carry on its business for a period exceeding six months.

Section 13 deals with the consequences of revocation. It empowers the NDIC to step in as liquidator. It also outlines the process for winding down the affected institution.

The CBN said it acted strictly within these provisions.

This is a developing story. Ejes Gist News will provide updates as the NDIC announces next steps for depositors