Failure to meet regulatory requirements: CBN revokes licences of 46 MFBs

NDIC swings into action, begins assets takeover of failed MFBs, warns public against dealings

The Central Bank of Nigeria (CBN), on Wednesday, revoked the operating licences of 46 Microfinance Banks (MFBs) following their failure to meet regulatory requirements for continued operation as licensed financial institutions.

In a statement, Mrs. Hakama Sidi-Ali, CBN’s Acting Director of Communications, said the revocation became effective on July 1, 2026.

She said the revocation was in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

“The Central Bank of Nigeria has revoked the operating licenses of forty-six (46) Microfinance Banks with effect from July 1, 2026, in accordance with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020,” the statement read.

The CBN said the revocation was approved after the affected institutions failed to satisfy the regulatory conditions required to continue operating as licensed financial institutions.

“The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” it stated.

The CBN explained that the decision became necessary because one or more of several infractions were established against the affected institutions.

These, according to the statement, included insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of receiving licences and failure to maintain the prescribed minimum capital unimpaired by losses.

Among the 46 affected institutions are Gold Microfinance Bank, Merchant Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Safegate Microfinance Bank, NOW NOW Digital Microfinance Bank, Zain Microfinance Bank, Bompai Microfinance Bank, Sycamore Microfinance Bank, Apple Microfinance Bank, Entrepreneur Microfinance Bank and Avantus Microfinance Bank, alongside several others operating across Lagos, Kano, Abuja, Abia, Ogun, Kaduna, Niger, Rivers, Plateau, Benue, Osun and other states.

The apex bank said the measure forms part of its broader efforts to strengthen financial sector stability and enforce compliance with existing laws.

“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 statement added.

Reaffirming its commitment to financial system stability, the CBN said it would continue to take supervisory and regulatory actions where necessary.

“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 said.

Meanwhile, the Nigeria Deposit Insurance Corporation has warned members of the public against carrying out transactions with 46 microfinance banks whose operating licences were revoked by the Central Bank of Nigeria, saying the affected institutions are no longer authorised to conduct banking business in the country.

The warning was contained in a press statement issued on Wednesday by the Head of the Communication and Public Affairs Department of the NDIC, Hawwau Gambo, following the CBN’s revocation of the licences of the affected microfinance banks.

According to the corporation, it has been appointed the official liquidator of the failed banks in line with Section 12(2) of the Banks and Other Financial Institutions Act 2020 and Section 55(1) and (2) of the NDIC Act 2023.

The statement said, “Following the revocation of the operating licenses of 46 Microfinance Banks by the Central Bank of Nigeria, on July 1, 2026, the Nigeria Deposit Insurance Corporation has been appointed as the official Liquidator, pursuant to Section 12 (2) of BOFIA 2020, and Section 55 (1 & 2) of the NDIC Act 2023.”

The corporation said the appointment empowers it to oversee the orderly winding up of the institutions and protect the interests of depositors.

“It is in this capacity that the Corporation wishes to inform the depositors of the banks in particular and the general public in general that the affected institutions are no longer authorised to conduct banking business in Nigeria,” the statement added.

The NDIC cautioned members of the public against dealing with the failed banks or tampering with their assets and records.

It stated, “Consequently, members of the public are strongly advised against any unauthorised transaction with the closed banks, or any attempt by individuals to remove, conceal, retain, or interfere with the assets, records, or properties of the banks, as this may constitute a violation of the law that could attract appropriate legal consequences.”

The corporation disclosed that it had already commenced the liquidation process, including taking possession of the banks, verifying depositors’ claims and paying insured deposits to eligible customers.

“The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors,” the statement said.

It added that depositors and the general public would receive regular updates throughout the liquidation exercise.

“Depositors and the general public would be duly informed on an ongoing basis on further steps to be taken regarding the liquidation exercise,” the statement added.