The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks across the country, effective July 1, 2026, after the institutions failed to meet key regulatory requirements. The action, approved by CBN Governor Olayemi Cardoso and announced by Acting Director of Corporate Communications Hakama Sidi-Ali, was taken under Sections 12 and 13 of the Banks and Other Financial Institutions Act, 2020. The apex bank said the affected institutions were found guilty of one or more infractions, including insufficient assets to cover liabilities, shutting down operations without CBN approval, prolonged inactivity, failing to commence business within 12 months of licensing, and falling below the minimum capital requirements.
The affected lenders span Tier 1, Tier 2, and State-licensed microfinance banks across nearly 20 states, including Lagos, Kano, Abuja, Rivers, Kaduna, and Delta. Among the higher-profile names on the list are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, and NOW NOW Digital Microfinance Bank, along with a cluster of Kano-based lenders such as Bompai, Sumaila, and TOFA Microfinance Banks.
The CBN framed the move as part of its broader mandate to safeguard financial sector stability, protect depositors, and enforce compliance, and said it would continue similar supervisory action wherever necessary.
The Nigeria Deposit Insurance Corporation (NDIC) has commenced the process of paying insured deposits to customers of the microfinance banks.
“The NDIC has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors,” it said in a statement, while warning members of the public against conducting business with the affected banks.
Leave feedback about this
You must be logged in to post a comment.