By Peace Erewunmi

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing their failure to meet regulatory requirements necessary for continued operation as licensed financial institutions. The revocation took effect on July 1, 2026, following approval by the Governor of the CBN, Olayemi Cardoso.

According to the apex bank, the action was taken under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020. The CBN explained that the affected institutions failed to satisfy one or more of the conditions required to retain their operating licences.

The regulator stated that the affected banks were found to have committed various infractions, including insufficient assets to meet liabilities, closure of operations without prior approval from the CBN, prolonged inactivity and cessation of financial intermediation activities, failure to commence operations within the stipulated period after receiving licences, and failure to maintain the minimum capital requirements prescribed by law.

Among the institutions affected by the revocation are Merchant Microfinance Bank, Gold Microfinance Bank, NOW NOW Digital Microfinance Bank, Safegate Microfinance Bank, Creditville Microfinance Bank, Entrepreneur Microfinance Bank, Verdant Microfinance Bank, Sycamore Microfinance Bank, Apple Microfinance Bank, and several others operating across different states of the federation.

The CBN said the measure forms part of its ongoing efforts to strengthen oversight of the financial sector, protect depositors, and ensure that licensed institutions comply with existing laws and regulatory standards. The bank emphasized that maintaining a stable and resilient financial system remains a top priority.

Financial analysts note that the revocation reflects the regulator’s determination to enforce compliance and improve confidence in Nigeria’s financial system. They argue that institutions unable to meet prudential and operational standards pose risks to depositors and the wider financial sector.

The development follows previous regulatory actions by the CBN against financial institutions that failed to comply with licensing and operational requirements. The apex bank has repeatedly stated that it will continue to take necessary supervisory measures to preserve the integrity of Nigeria’s banking industry.

Customers of the affected microfinance banks are expected to receive further guidance from the relevant authorities, including the Nigeria Deposit Insurance Corporation (NDIC), regarding the protection of eligible deposits and the resolution process for the closed institutions.