The Central Bank of Nigeria revoked the operating licences of 46 microfinance banks with effect from 1 July 2026, citing grounds including insufficient assets, unapproved closure of operations and failure to meet minimum capital requirements, and on the same day issued a separate circular capping how long a troubled bank may suspend payment obligations at two business days.
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks (MFBs), effective 1 July 2026, in an exercise of its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The revocations were approved by CBN Governor Olayemi Cardoso and announced in a statement by Hakama Sidi-Ali, the apex bank's Acting Director of Corporate Communications.
Why CBN says it acted
CBN attributed the revocations to one or more of five grounds across the 46 institutions: insufficient assets to meet liabilities; closure of operations without the CBN's approval; inactivity or cessation of financial intermediation; failure to commence operations within 12 months of licence approval; and failure to maintain the minimum capital funds unimpaired by losses. These are CBN's own stated reasons for each institution and have not been independently adjudicated; OLEX Daily attributes them to the regulator rather than adopting them as established fact about any individual bank.
CBN said the action was taken "to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements," and that it "remains committed to ensuring a safe, sound and resilient financial system" and would continue supervisory and regulatory action as necessary.
What licence revocation means in law
Under Section 12 of BOFIA 2020, the CBN has statutory power to revoke the licence of a bank or other financial institution where specified grounds are met — including those CBN has cited here. Revocation removes the institution's legal authority to carry on banking business in Nigeria: a revoked entity may no longer take deposits, extend credit, or otherwise hold itself out as a licensed financial institution.
Section 12(2) of BOFIA 2020, read with Section 55(1) and (2) of the NDIC Act 2023, provides for the Nigeria Deposit Insurance Corporation (NDIC) to be appointed liquidator of a bank whose licence has been revoked. Depositors of a liquidated deposit-taking institution ordinarily look to the NDIC's deposit insurance scheme for the protected portion of their funds, and to the liquidation process for any balance, in line with the applicable insured-deposit limits and liquidation procedure. CBN's statement, as reported, did not set out bank-specific liquidation timelines or the amounts depositors of each institution may recover.
A bank's board and management lose their authority to act for the institution as a licensed financial entity once a liquidator is appointed; control of the institution's affairs passes to the liquidator for the purposes of winding up its business under the applicable statutory framework. Section 13 of BOFIA sets out procedural requirements attaching to revocation, including publication of the revocation.
Geographic and tier spread
Kano State accounts for the largest concentration of affected banks, with 13; Lagos follows with eight. Abia, the Federal Capital Territory, Kaduna, Kebbi, Niger, Ogun and Plateau states each have two affected banks, while Anambra, Akwa Ibom, Bayelsa, Benue, Cross River, Delta, Kwara, Ondo, Osun, Oyo and Rivers each have one.
By tier, the 46 comprise 25 Tier 2 MFBs, 18 Tier 1 MFBs and three State MFBs.
The recapitalisation throughline
The revocations follow a March 2024 CBN directive raising minimum capital requirements across bank categories, with a compliance deadline of 31 March 2026. As of 6 March 2026, only 30 banks had met the new capital requirement, according to figures cited in coverage of the exercise. CBN has not, in the material reviewed for this story, published an itemised statement tying each of the 46 revocations directly to recapitalisation non-compliance as opposed to the other four grounds it cited (insufficient assets, unapproved closure, inactivity, or late commencement of operations).
The same-day payment-suspension circular
On the same date the revocations took effect, CBN issued a separate circular limiting to two business days the period during which a troubled bank may suspend its payment obligations, issued under powers granted by BOFIA and the CBN Act. The circular's legal significance is that it narrows the window within which a distressed institution may lawfully withhold payment to customers or counterparties before triggering further regulatory consequence, tightening the operational runway available to banks under stress ahead of any decision on their licence status.
Legal recourse
BOFIA does not appear to have been reported as providing an appeal mechanism specific to this batch of revocations, and CBN's statement as covered by the sources reviewed did not address a right of appeal or judicial review for the affected institutions. As a general matter, administrative decisions of statutory regulators in Nigeria remain subject to judicial review before the Federal High Court, which has exclusive jurisdiction over banking regulation matters, on established public law grounds.
For depositors, recourse for insured deposits ordinarily runs through the NDIC's deposit insurance mechanism rather than through a claim against CBN directly.
The list
CBN's published list names all 46 affected institutions. The list below reproduces the official style (bank name, tier, state) without alteration or commentary:
- Minji-Se Churchill MFB — Tier 1 — Rivers
- Merchant MFB — Tier 2 — Abia
- Janmaa MFB — Tier 1 — Kwara
- Busu MFB — Tier 2 — Niger
- Gold MFB — Tier 1 — Lagos
- Zain MFB (formerly Dawakin Tofa MFB) — Tier 2 — Kano
- Bompai MFB — Tier 1 — Kano
- Ajwa MFB — Tier 2 — Kano
- Now Now Digital MFB — Tier 2 — Kano
- Crystabel Microfinance Bank — Tier 1 — Bayelsa
- Chanelle MFB — State-based — Lagos
- Abia SME MFB — Tier 1 — Abia
- Kamba MFB — Tier 2 — Kebbi
- Iwade MFB — Tier 2 — Ogun
- Winview MFB — Tier 1 — Abuja
- Zuru MFB — Tier 2 — Kebbi
- Minjibir MFB — Tier 1 — Kano
- Shanono MFB — Tier 2 — Kano
- Sumaila MFB — Tier 2 — Kano
- Rimin Gado MFB — Tier 2 — Kano
- Mwaghavul MFB — State-based — Plateau
- Sycamore MFB — Tier 2 — Kano
- TOFA MFB — Tier 2 — Kano
- Safegate MFB — Tier 1 — Lagos
- Creekline MFB — Tier 2 — Delta
- Bestar MFB — Tier 1 — Oyo
- Livingspring MFB — Tier 1 — Cross River
- Apple MFB — Tier 2 — Ogun
- Stanford MFB — State-based — Uyo (Akwa Ibom)
- Frontline MFB — Tier 2 — Anambra
- Zafec MFB — Tier 2 — Kaduna
- Supreme MFB — Tier 1 — Lagos
- Bejin-Doko MFB — Tier 2 — Niger
- Kanopoly MFB — Tier 1 — Kano
- Bellbank MFB (formerly Tsanyawa) — Tier 2 — Kano
- Yeneng MFB — Tier 2 — Plateau
- Creditville MFB — Tier 1 — Lagos
- MBAG MFB — Tier 1 — Lagos
- Straight Sahara MFB — Tier 1 — Benue
- Our Pass MFB — Tier 2 — Ondo
- VERDANT MFB — Tier 1 — Lagos
- Basawa MFB — Tier 2 — Kaduna
- Casha MFB — Tier 2 — Abuja
- Esteem MFB — Tier 2 — Kano
- Enterpreneur MFB — Tier 1 — Lagos
- Avantus MFB — Tier 2 — Osun
