The Central Bank of Nigeria has revoked the operating licenses of 46 microfinance banks. Governor Olayemi Cardoso approved the action because the banks failed to meet key requirements under the Banks and Other Financial Institutions Act 2020. Acting Director of Corporate Communications Hakama Sidi-Ali announced the revocation on Wednesday.
The affected institutions span 19 states, from Lagos to Kano and parts of the North. Some could not maintain enough assets to cover their liabilities. Others never started operations within the required 12 months after licensing, while a few simply shut down without approval or went completely inactive.
This move forms part of the CBN's broader push to clean up the financial sector. Many of these microfinance banks were licensed in recent years to serve small businesses and everyday Nigerians who struggle to access credit from bigger commercial banks. When they fail, it leaves customers exposed and weakens trust in the smaller end of the banking system.
The list includes familiar names such as Gold Microfinance Bank in Lagos, NOW NOW Digital MFB in Kano, and Creditville MFB, also in Lagos. Others like Minji-Se Churchill MFB, Merchant MFB, and several in northern states such as Zain MFB (formerly Dawakin Tofa) and Bompai MFB also lost their licences. The reasons range from impaired minimum capital funds to outright dormancy.
For ordinary Nigerians, especially traders, artisans and farmers who rely on micro loans, the development carries real implications. A functioning microfinance sector helps money circulate at the grassroots level. When these banks collapse or operate below standard, it disrupts access to credit and forces people back to high-interest informal lenders or “contribution” schemes that often go sour.
The CBN has stressed that the action protects the integrity of the financial system. Customers of the affected banks should contact the institutions or the Nigeria Deposit Insurance Corporation for guidance on their deposits and outstanding loans. Most of these microfinance banks hold relatively small deposits compared to commercial banks, but the impact still stings in communities where they were the only formal option.
Hakama Sidi-Ali said the revocation followed due process under Sections 12 and 13 of BOFIA 2020. This latest round continues a pattern seen in previous years as the apex bank tightens oversight on licensing and capital requirements.Nigerians should expect more scrutiny of financial institutions in the coming months. The CBN has signalled it will not tolerate operators who cannot meet basic standards, a message that could reshape the microfinance landscape and push surviving players to raise their game.