…Cites insolvency, inactivity, capital deficiencies
The Central Bank of Nigeria (CBN) has revoked the operating licenses of forty-six (46) Microfinance Banks (MFBs) effective today, July 1, 2026, citing widespread regulatory failures ranging from insolvency to prolonged inactivity.
This is according to an official revocation order issued by the CBN and obtained by Spear News Nigeria.
The action, approved by CBN Governor Mr. Olayemi Cardoso, was exercised under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empowers the central bank to withdraw licenses from financial institutions that fail to meet statutory requirements.
According to the official document, the licenses were withdrawn due to one or more of the following circumstances:
· Insufficient assets to meet liabilities,
· Unauthorized closure of operations without CBN approval,
· Inactivity and cessation of financial intermediation,
· Failure to commence operations within 12 months of license approval, and
· Failure to maintain minimum capital funds unimpaired by losses.
The revocation order covers banks from 16 states and the Federal Capital Territory, with Kano State recording the highest number of closures at 15 affected institutions. Lagos State followed with eight closures, while Abuja, Kaduna, Kebbi, Niger, Ogun, and Plateau states each recorded multiple revocations.
Among the affected institutions are Minji-Se Churchill MFB (Rivers), Merchant MFB (Abia), Janmaa MFB (Kwara), Busu MFB (Niger), and Gold MFB (Lagos). Kano State lost the highest number, including Zain MFB (formerly Dawakin Tofa MFB), Bompai MFB, Ajwa MFB (formerly Gezawa), NOW NOW DIGITAL MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Sycamore MFB, TOFA MFB, Kanopoly MFB, Bellbank MFB (formerly Tsanyawa), and ESTEEM MFB.
Lagos-based closures include Safegate MFB, Supreme MFB, Creditville MFB, MBAG MFB, VERDANT MFB, ENTERPRENEUR MFB, as well as Chanelle MFB and Gold MFB.
Other affected banks include Crystabel MFB (Bayelsa), Abia SME MFB (Abia), Kamba MFB and Zuru MFB (Kebbi), Iwade MFB and Apple MFB (Ogun), Winview MFB and CASHA MFB (Abuja), Mwaghavul MFB and Yeneng MFB (Plateau), Creekline MFB (Delta), Bestar MFB (Oyo), Livingspring MFB (Cross River), Stanford MFB (Uyo), Frontline MFB (Anambra), Zafec MFB and BASAWA MFB (Kaduna), Bejin-Doko MFB (Niger), STRAIGHT SAHARA MFB (Benue), OURPASS MFB (Ondo), and AVANTUS MFB (Osun).
In the statement signed by the Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, the CBN described the revocation as part of its “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 central bank reassured the public that it 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.”
Under BOFIA 2020 provisions, the Nigeria Deposit Insurance Corporation (NDIC) is expected to step in to verify claims and pay insured deposits to affected customers, up to the statutory limit. Depositors of the affected MFBs are advised to contact the NDIC for guidance on claiming their funds.
The revocation takes immediate effect, and all affected institutions are required to cease operations forthwith.
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