CBN Revokes Licences of 46 Microfinance Banks in Major Regulatory Shake-Up

By Emmanuel Kwada

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country in a major regulatory action aimed at strengthening the stability and integrity of Nigeria’s financial system.

The development, which affects both traditional and digital microfinance institutions, is part of the apex bank’s ongoing efforts to enforce compliance with banking regulations and ensure that financial institutions operating in the country meet required standards.

Among the affected institutions are Minji-Se Churchill Microfinance Bank, Merchant Microfinance Bank, Janmaa Microfinance Bank, Busu Microfinance Bank, Gold Microfinance Bank, Zain Microfinance Bank (formerly Dawakin Tofa MFB), Bompai Microfinance Bank, Ajwa Microfinance Bank (formerly Gezawa MFB), NOW NOW Digital Microfinance Bank, Crystabel Microfinance Bank, Chanelle Microfinance Bank, Abia SME Microfinance Bank, Kamba Microfinance Bank, Iwade Microfinance Bank, Winview Microfinance Bank, Zuru Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank and Mwaghavul Microfinance Bank.

Others include Sycamore Microfinance Bank, Tofa Microfinance Bank, Safegate Microfinance Bank, Creekline Microfinance Bank, Bestar Microfinance Bank, Livingspring Microfinance Bank, Apple Microfinance Bank, Stanford Microfinance Bank, Frontline Microfinance Bank, Zafec Microfinance Bank, Supreme Microfinance Bank, Bejin-Doko Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank (formerly Tsanyawa MFB), Yeneng Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Straight Sahara Microfinance Bank, OurPass Microfinance Bank, Verdant Microfinance Bank, Basawa Microfinance Bank, Casha Microfinance Bank, Esteem Microfinance Bank, Entrepreneur Microfinance Bank and Avantus Microfinance Bank.

The revocation signals the CBN’s determination to sanitize the microfinance banking sector, which plays a critical role in providing financial services to low-income earners, small businesses and underserved communities.

Industry observers say the action may have been prompted by issues ranging from regulatory non-compliance and insolvency concerns to failure to meet operational requirements stipulated by the apex bank.

Microfinance banks serve as key channels for financial inclusion in Nigeria, offering savings, loans and other banking services to individuals and small enterprises that may not have easy access to conventional commercial banks.

As such, any regulatory action affecting operators in the sector often attracts significant attention from customers and stakeholders.

While the CBN has continued to strengthen oversight of financial institutions, analysts note that the latest move underscores the regulator’s commitment to protecting depositors and maintaining confidence in the financial system.

Customers of the affected institutions are expected to seek clarification from the relevant authorities regarding the status of their deposits and the procedures that may be put in place to safeguard their interests following the licence withdrawals.

The latest action represents one of the most significant rounds of licence revocations in the microfinance banking sector in recent times and highlights the CBN’s continued push for stronger corporate governance, financial soundness and regulatory compliance among financial institutions operating in Nigeria.