CBN Cancels Operation Of 46 Microfinance Banks Nationwide

The Central Bank of Nigeria (CBN) has announced the cancellation of the operating licenses of 46 microfinance banks across the country, effective July 1, 2026.

In a statement, the CBN said the decision was taken in exercise of the powers conferred on the bank under Sections 12 and 13 of the Banking and Financial Institutions Act (BOFIA), 2020.

The CBN said the cancellation of the licenses was approved by the Governor of the bank, Olayemi Cardoso, after the banks failed to meet the essential requirements required to continue operating as licensed financial institutions.

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The CBN stated that the reasons for the action included low non-performing assets, closure of operations without the CBN’s approval, and suspension of all financial activities.

Other reasons included failure to commence operations within 12 months of obtaining a license, and failure to maintain the minimum capital not to be impaired by losses.

The CBN said the move was part of its efforts to safeguard financial stability, protect depositors, and ensure compliance with regulations by all financial institutions operating in the country.

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The bank also stressed that it would continue to take regulatory and supervisory measures to ensure a sound and safe financial system and strengthen public confidence in the banking system in Nigeria.

The list of banks affected includes various Microfinance Banks from states and cities including Lagos, Kano, Abuja, Abia, Ogun, Kaduna, among others, including Gold MFB, Creditville MFB, CASHA MFB, Supreme MFB, and Avanus MFB.

The CBN added that the move would help clean up the microfinance sector in Nigeria and strengthen banks that operate in a disciplined and robust manner.