The Central Bank of Nigeria (CBN) has officially revoked the operating licenses of 46 microfinance banks (MFBs). The decision, which took effect on July 1, 2026, was approved by CBN Governor Olayemi Cardoso under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
In a significant move to fortify Nigeria’s financial sector and ensure institutional compliance, the Central Bank of Nigeria (CBN) has officially revoked the operating licenses of 46 microfinance banks (MFBs). The decision was approved by the CBN under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The apex bank identified several critical regulatory breaches that necessitated this enforcement action. According to the official order, the affected institutions failed to meet the conditions required for continued operation due to factors such as Asset Deficiency,Operational Irregularities,Inactivity, Startup Failures and Capital Erosion
Following the announcement the Nigeria Deposit Insurance Corporation (NDIC) has been appointed as the official liquidator. The NDIC has commenced the orderly closure of the affected banks, which includes the verification and payment of insured sums to eligible depositors. The public has been strictly advised to cease all transactions with these institutions and cautioned against any interference with their records or assets.
While the list includes several institutions ranging from Tier 1 and Tier 2 categories to state-level entities some fintech-linked organizations have clarified their status. For instance, institutions like Sycamore MFB have noted that their revocation pertains to legacy licenses rendered redundant by newer specialized finance company licenses, ensuring that their primary services remain unaffected.
For a detailed breakdown of the affected institutions and the full context of this regulatory action, you can view the official report here: Full List: CBN Revokes Licences of 46 Microfinance Banks.
This industry-wide action reflects the CBN’s ongoing commitment to fostering a safe, sound, and resilient financial system. By removing entities that no longer meet prudential standards, the regulator aims to preserve public confidence in the banking sector and ensure that financial services are delivered by compliant institutions.
See also: How the CBN Microfinance Bank Purge Impacts Sycamore
Stakeholders and affected customers are advised to monitor official updates from the Central Bank of Nigeria and the Nigeria Deposit Insurance Corporation for further guidance on the liquidation process.
