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CBN Crackdown: 46 Microfinance Banks Lose Licenses in Major Shake-Up

"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"

Per Second NewsJuly 1, 20262 Mins read445

By Samuel Akpan

Effective from July 1, 2026, the operating licences of 46 microfinance banks across the country have been revoked, the Central Bank of Nigeria (CBN) has announced.

It explained that after they failed to meet critical regulatory requirements, the financial institutions were axed, a step aimed at safeguarding the stability of the financial system and protecting depositors.

The decision as approved by apex bank’s Governor Olayemi Cardoso, was announced on Wednesday in a statement by Hakama Sidi-Ali, Acting Director of Corporate Communications sent to Persecondnews.

The exercise was carried out in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

“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,” it stated.

According to the revocation order, the action became necessary because of one or more of the circumstances.

“Insufficient assets to meet liabilities, closure of operations without the CBN approval, Inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses,” CBN said.

The 46 microfinance banks whose licences were revoked are: Minji-Se Churchill MFB (tier 1) in Rivers; Merchant MFB (tier 2) in Abia; Janmaa MFB (tier 1) in Kwara; Busu MFB (tier 2) in Niger; Gold MFB (tier 1) in Lagos; Zain MFB, formerly Dawakin Tofa MFB (tier 2) in Kano; Bompai MFB (tier 1) in Kano; Ajwa MFB (tier 2) in Kano; Now Now Digital MFB (tier 2) in Kano; Crystabel Microfinance Bank (tier 1) in Bayelsa.

Others are Chanelle MFB (state-based) in Lagos; Abia SME MFB (tier 1) in Abia; Kamba MFB (tier 2) in Kebbi; Iwade MFB (tier 2) in Ogun; Winview MFB (tier 1) in Abuja; Zuru MFB (tier 2) in Kebbi; Minjibir MFB (tier 1) in Kano; Shanono MFB (tier 2) in Kano; Sumaila MFB (tier 2) in Kano; Rimin Gado MFB (tier 2) in Kano; Mwaghavul MFB (state-based) in Plateau; Sycamore MFB (tier 2) in Kano; TOFA MFB (tier 2) in Kano; Safegate MFB (tier 1) in Lagos.

Also axed are Creekline MFB (tier 2) in Delta; Bestar MFB (tier 1) in Oyo; Livingspring MFB (tier 1) in Cross River; Apple MFB (tier 2) in Ogun; Stanford MFB (state-based) in Uyo; Frontline MFB (tier 2) in Anambra; Zafec MFB (tier 2) in Kaduna; Supreme MFB (tier 1) in Lagos; Bejin-Doko MFB (tier 2) in Niger; Kanopoly MFB (tier 1) in Kano; Bellbank MFB, formerly Tsanyawa (tier 2), in Kano; Yeneng MFB (tier 2) in Plateau; Creditville MFB (tier 1) in Lagos and MBAG MFB (tier 1) in Lagos.

Straight Sahara MFB (tier 1) in Benue; Our Pass MFB (tier 2) in Ondo; VERDANT MFB (tier 1) in Lagos; Basawa MFB (tier 2) in Kaduna; Casha MFB (tier 2) in Abuja; Esteem MFB (tier 2) in Kano; Enterpreneur MFB (tier 1) in Lagos; and Avantus MFB (tier 2) in Osun were also affected.

The move is part of the broader recapitalisation drive that began in March 2024 when the CBN raised the minimum capital base for banks and set a compliance deadline of March 31, 2026.

By March 6, 2026, the regulator had confirmed that 30 banks had already met the new capital requirements.

The apex bank stressed that it would not relent in its oversight role, stating: “CBN remains committed to promoting a safe, sound and resilient financial system and would continue to take supervisory and regulatory actions where necessary to maintain public confidence in Nigeria’s financial sector.”