Mass license revocation hits 46 Microfinance banks across Nigeria - ITREALMS

In a major regulatory sweep aimed at safeguarding Nigeria's financial ecosystem, the Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 Microfinance Banks (MFBs), effective July 1, 2026, reports ITREALMS.


The directive, approved by CBN Governor Mr. Olayemi Cardoso, comes as a direct response to the institutions' failure to meet critical regulatory benchmarks required to remain operational.

According to the official press release of revocation of 46 MfB signed by Mrs. Hakama Sidi-Ali, the Acting Director of Corporate Communications, the banks fell short on multiple fronts under the Banks and Other Financial Institutions Act (BOFIA) 2020.

Infractions ranged from capital erosion and asset insufficiency to outright operational closure and failure to commence banking activities within a year of getting a license. 

The apex bank reiterated that this hardline stance is necessary to shield depositors and ensure total compliance with financial sector laws.

The official list, revealed that the regulatory crackdown cut across Tier 1, Tier 2, and State-licensed categories, heavily impacting several commercial hubs and regional states.

The geographical distribution of the affected microfinance banks reveals that Kano State bore the biggest brunt of the regulatory purge, losing a total of 13 institutions. 

Among the closed entities in Kano were high-profile names and recently rebranded establishments like Now Now Digital MFB, Zain MFB (formerly Dawakin Tofa), Ajwa MFB, Bompai MFB, and Bellbank MFB. Other community institutions cleared from the state include Minjibir, Shanono, Sumaila, Rimin Gado, Sycamore, Tofa, Kanopoly, and Esteem Microfinance Banks.

Lagos State, Nigeria's primary economic hub, followed closely with 9 microfinance banks shut down. The affected institutions in Lagos comprise Gold MFB, Safegate MFB, Supreme MFB, Ourpass MFB, Verdant MFB, Basawa MFB, Entrepreneur MFB, and the State-categorized Chanelle MFB.

Other regions also felt the impact of the CBN's sweeping exercise:

Abia State saw the exit of Merchant MFB and the Abia SME MFB.

Federal Capital Territory (FCT), Abuja, lost Winview MFB and Casha MFB.

Kaduna State had Zafec MFB and Straight Sahara MFB revoked.

Kebbi State lost both Kamba and Zuru Microfinance Banks.

Niger State saw the closure of Busu MFB and Bejin-Doko MFB.

Ogun State was affected by the revocation of Iwade MFB and Apple MFB.

Plateau State lost Mwaghavul MFB and Yeneng MFB.

A single microfinance bank license was also revoked in each of the following states: Anambra (Frontline MFB), Bayelsa (Crystabel MFB), Benue (Creditville MFB), Cross River (Livingspring MFB), Delta (Creekline MFB), Kwara (Janmaa MFB), Ondo (MBAG MFB), Osun (Avantus MFB), Oyo (Bestar MFB), Rivers (Minji-Se Churchill MFB), and Akwa Ibom / Uyo (Stanford MFB).

Remmy Nweke/DoP