The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing their inability to meet key regulatory and operational requirements. The decision, which took effect on July 1, 2026, is part of the apex bank’s ongoing efforts to strengthen Nigeria’s financial system, protect depositors, and ensure that financial institutions comply with established banking regulations.
According to a statement issued by Hakama Sidi-Ali, Acting Director of Corporate Communications at the CBN, the revocation was approved by the Governor of the Central Bank, Olayemi Cardoso. The bank explained that the affected institutions were found wanting in several critical areas, including inadequate assets to cover liabilities, prolonged inactivity, failure to commence operations after receiving licences, and insufficient capital to sustain operations.
The regulator stressed that the move was necessary to preserve public confidence in the financial sector and prevent potential risks to customers and the wider economy. The CBN noted that some of the affected banks had ceased financial intermediation activities without obtaining approval, while others failed to maintain the minimum capital requirements expected of licensed microfinance institutions.
Among the banks affected are Gold Microfinance Bank, Safegate Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Merchant Microfinance Bank, Avantus Microfinance Bank, and several others spread across Lagos, Kano, Abuja, Rivers, Ogun, Kaduna, Plateau, and other states. Kano recorded the highest number of affected institutions, highlighting the scale of the regulatory action in the state.
The latest development comes months after the CBN’s banking recapitalisation drive, which required financial institutions to strengthen their capital base before the March 31, 2026 deadline. While the apex bank recently announced that 30 banks had successfully met the new capital requirements, the revocation of 46 microfinance bank licences underscores its determination to enforce compliance and maintain a safe, stable, and resilient financial system for Nigerians.
source: The cable
