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

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

“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.

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.

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.”