By Maryam Shuaibu
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks across the country, citing regulatory breaches, while the Nigeria Deposit Insurance Corporation (NDIC) has assured depositors that it has begun the process of liquidating the failed institutions and paying insured deposits.
The revocation, which took effect on 1 July 2026, was announced by the apex bank in a statement on Wednesday.
According to the CBN, the action followed the affected banks’ failure to meet the regulatory conditions required to continue operating as licensed financial institutions.
The bank said the decision was taken under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, with the approval of the CBN Governor, Olayemi Cardoso.
It explained that the affected institutions were found to have committed one or more regulatory infractions, including insufficient assets to meet liabilities, closure of operations without the approval of the CBN, prolonged inactivity, failure to commence business within 12 months of receiving licences, and failure to maintain the required minimum capital.
“The revocation of the licences 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 CBN said.
The apex bank added that it would continue to strengthen supervision of financial institutions to promote a safe, sound and resilient banking system.
NDIC Begins Liquidation Process
Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) announced that it has been appointed the official liquidator of the 46 microfinance banks in line with the provisions of BOFIA 2020 and the NDIC Act 2023.
The corporation said the affected institutions are no longer authorised to carry out banking operations in Nigeria.
It warned members of the public against conducting transactions with any of the closed banks or attempting to remove, conceal or interfere with their assets, records or property, noting that such actions could attract legal sanctions.
According to the NDIC, it has commenced the orderly closure of the failed banks, including taking over their operations, verifying depositors’ records and processing payment of insured deposits to eligible customers.
The corporation assured depositors that it would continue to provide updates on the liquidation exercise and the process for recovering insured funds.
Banks Affected
The affected institutions are spread across several states, including Lagos, Kano, Abuja, Kaduna, Ogun, Niger, Plateau, Kebbi, Rivers, Abia, Bayelsa, Cross River, Delta, Benue, Ondo, Osun and Anambra.
Among the affected microfinance banks are Bompai Microfinance Bank, Kanopoly Microfinance Bank, Minjibir Microfinance Bank, Now Now Digital Microfinance Bank, Creditville Microfinance Bank, Gold Microfinance Bank, Safegate Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Apple Microfinance Bank, and Avantus Microfinance Bank, alongside several others.
The licence revocations form part of the CBN’s broader efforts to strengthen corporate governance, improve regulatory compliance, enhance risk management, and safeguard the stability of Nigeria’s financial system.
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