CBN Withdraws Operating Licences of 46 Microfinance Banks

ABF News | Abuja

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country as part of efforts to strengthen the nation’s financial system and enforce strict compliance with banking regulations.

The apex bank announced that the revocation took effect on July 1, 2026, following the approval of the Governor of the CBN, Olayemi Cardoso. The action was taken in line with the provisions of the Banks and Other Financial Institutions Act (BOFIA), 2020.

According to the CBN, the affected microfinance banks failed to meet key regulatory requirements necessary for continued operation. The violations include inadequate assets to cover liabilities, failure to maintain the prescribed minimum capital, prolonged inactivity, unauthorized cessation of business, and failure to commence operations within the stipulated period after obtaining licences.

The bank explained that the decision forms part of its ongoing commitment to sanitise the financial sector, strengthen regulatory oversight and protect depositors from the risks associated with weak or non-compliant financial institutions.

The CBN noted that maintaining a safe, sound and resilient financial system remains a top priority, stressing that institutions operating under its licence must comply with all prudential guidelines and statutory obligations.

Among the institutions affected are Minji-Se Churchill Microfinance Bank, Merchant Microfinance Bank, Gold Microfinance Bank, Winview Microfinance Bank, Creditville Microfinance Bank, Entrepreneur Microfinance Bank, Avantus Microfinance Bank, Casha Microfinance Bank, alongside several others located across the Federal Capital Territory and various states, including Lagos, Rivers, Abia, Osun, Kano, Kaduna, Kebbi, Ogun, Niger, Plateau, Bayelsa, Delta, Benue, Cross River, Oyo and Anambra.

The apex bank reaffirmed that it will continue to take decisive regulatory actions against financial institutions that fail to comply with extant laws and supervisory standards, noting that such measures are essential to preserving public confidence and ensuring the stability of Nigeria’s financial system.

Customers of the affected banks are expected to follow further directives from the appropriate regulatory authorities regarding the resolution process and protection of eligible deposits.