CBN Revokes Operating Licenses of 46 Microfinance Banks

Mr Adeyemi Cardosso, Governor, Central Bank of Nigeria, CBN

The Central Bank of Nigeria (CBN) has withdrawn the operating licenses of 46 microfinance banks (MFBs) due to their failure to comply with the regulatory requirements for their continuous operation as bona fide Microfinance banks in the Federal Republic of Nigeria.

According to a media statement on Wednesday by Hakama Sidi-Ali, an acting director of corporate communications with CBN, the apex bank enunciated that the revocation took effect from 1st of July 2026, in conformity with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The CBN said the action was approved by the CBN Governor, Olayemi Cardoso, as part of efforts to safeguard the stability of the financial system, protect depositors and ensure compliance with regulatory standards.

The revocation order elucidated thus: “The action became necessary because of one or more of the circumstances: Insufficient assets to meet liabilities, 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,” CBN said.

It further enunciated thus: “The revocation of the licenses is part of the Bank’s 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 statement reads.

The bankers’ bank reiterated that it remains committed to promoting a safe, sound and resilient financial system and would continue to take supervisory and regulatory actions where it is pertinent to act decisively to maintain public confidence in Nigeria’s financial industry.

Below are the affected microfinance banks:

Minji-Se Churchill MFB (tier 1) in Rivers
Merchant MFB (tier 2) in Abia
Janmaa MFB (tier 1) in Kwara
Busu MFB (tier 2) in Niger
Gold MFB (tier 1) in Lagos
Zain MFB, formerly Dawakin Tofa MFB, a tier 2 lender in Kano
Bompai MFB (tier 1) in Kano
Ajwa MFB (tier 2) in Kano
Now Now Digital MFB (tier 2) in Kano
Crystabel Microfinance Bank (tier 1) in Bayelsa
Chanelle MFB (state-based) in Lagos
Abia SME MFB (tier 1) in Abia
Kamba MFB (tier 2) in Kebbi
Iwade MFB (tier 2) in Ogun
Winview MFB (tier 1) in Abuja
Zuru MFB (tier 2) in Kebbi
Minjibir MFB (tier 1) in Kano
Shanono MFB (tier 2) in Kano
Sumaila MFB (tier 2) in Kano
Rimin Gado MFB (tier 2) in Kano
Mwaghavul MFB (state-based) in Plateau
Sycamore MFB (tier 2) Kano
TOFA MFB (tier 2) in Kano
Safegate MFB (tier 1) in Lagos
Creekline MFB (tier 2) in Delta
Bestar MFB (tier 1) in Oyo
Livingspring MFB (tier 1) in Cross River
Apple MFB (tier 2) in Ogun
Stanford MFB (state-based) in Uyo
Frontline MFB (tier 2) in Anambra
Zafec MFB (tier 2) in Kaduna
Supreme MFB (tier 1) in Lagos
Bejin-Doko MFB (tier 2) in Niger
Kanopoly MFB (tier 1) in Kano
Bellbank MFB, formerly Tsanyawa (Tier 2), in Kano
Yeneng MFB (tier 2) in Plateau
Creditville MFB (tier 1) in Lagos
MBAG MFB (tier 1) in Lagos
Straight Sahara MFB (tier 1) in Benue
Our Pass MFB (tier 2) in Ondo
VERDANT MFB (tier 1) in Lagos
Basawa MFB (tier 2) in Kaduna
Casha MFB (tier 2) in Abuja
Esteem MFB (tier 2) in Kano
Enterpreneur MFB (tier 1) in Lagos
Avantus MFB (tier 2) in Osun

Recall that in March 2024, the CBN increased the paid-up capital base for banks, giving them until March 31, 2026, to meet the requirements.

CBN stipulated the minimum paid-up capital requirements for Micro-Finance Banks (MFBs) based on their operational license categories: 1, 2, 3, 4, & 5

Unit Microfinance Banks: ₦200 million (Categorised as Tier 1 and Tier 2; rural or unbanked Tier 2 operators require ₦50 million).
State Microfinance Banks: ₦1 billion.
National Microfinance Banks: ₦5 billion. [1, 2, 3, 4]
Notwithstanding the capital increase, banks are to ensure strict compliance with the minimum capital adequacy ratio (CAR) requirement applicable to their licence authorisation.
In line with extant regulations, banks that breach the CAR requirement shall be required to inject fresh capital to regularise their position.