CBN Withdraws Operating Licences of 46 Microfinance Banks

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks across the country after finding them in breach of key regulatory requirements.

The apex bank announced the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, noting that the revocation takes immediate effect.

According to the CBN, the action was taken pursuant to its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The regulator said the affected institutions no longer met the conditions required to continue operating as licensed financial institutions.

It explained that the decision followed the discovery of one or more regulatory violations, including inadequate assets to cover liabilities, shutting down operations without the approval of the CBN, prolonged inactivity and failure to carry out financial intermediation, failure to commence business within 12 months of obtaining a licence, as well as inability to maintain the prescribed minimum capital free from accumulated losses.

The CBN said the move forms part of its broader efforts to strengthen the financial system and ensure strict compliance with regulatory standards.

“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 Central Bank of Nigeria remains committed to promoting a safe, sound and resilient financial system and will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain public confidence in the Nigerian financial system,” the statement read.

The affected institutions are Minji-Se Churchill Microfinance Bank (Tier 1, Rivers State); Merchant Microfinance Bank (Tier 2, Abia State); Janmaa Microfinance Bank (Tier 1, Kwara State); Busu Microfinance Bank (Tier 2, Niger State); Gold Microfinance Bank(Tier 1, Lagos State); Zain Microfinance Bank (formerly Dawakin Tofa MFB, Tier 2, Kano State); Bompai Microfinance Bank (Tier 1, Kano State); Ajwa Microfinance Bank (formerly Gezawa MFB, Tier 2, Kano State); NOW NOW DIGITAL Microfinance Bank (Tier 2, Kano State); Crystabel Microfinance Bank (Tier 1, Bayelsa State); Chanelle Microfinance Bank (State Microfinance Bank, Lagos State); Abia SME Microfinance Bank (Tier 1, Abia State); Kamba Microfinance Bank (Tier 2, Kebbi State); Iwade Microfinance Bank (Tier 2, Ogun State); Winview Microfinance Bank (Tier 1, FCT Abuja); Zuru Microfinance Bank (Tier 2, Kebbi State); Minjibir Microfinance Bank (Tier 1, Kano State); Shanono Microfinance Bank (Tier 2, Kano State); Sumaila Microfinance Bank (Tier 2, Kano State); Rimin Gado Microfinance Bank (Tier 2, Kano State); Mwaghavul Microfinance Bank (State Microfinance Bank, Plateau State); Sycamore Microfinance Bank(Tier 2, Kano State); TOFA Microfinance Bank (Tier 2, Kano State); Safegate Microfinance Bank(Tier 1, Lagos State); Creekline Microfinance Bank (Tier 2, Delta State); Bestar Microfinance Bank (Tier 1, Oyo State); Livingspring Microfinance Bank (Tier 1, Cross River State); Apple Microfinance Bank (Tier 2, Ogun State); Stanford Microfinance Bank (State Microfinance Bank, Uyo); Frontline Microfinance Bank (Tier 2, Anambra State); Zafec Microfinance Bank (Tier 2, Kaduna State); Supreme Microfinance Bank (Tier 1, Lagos State); Bejin-Doko Microfinance Bank (Tier 2, Niger State); Kanopoly Microfinance Bank (Tier 1, Kano State); Bellbank Microfinance Bank (formerly Tsanyawa MFB, Tier 2, Kano State); Yeneng Microfinance Bank (Tier 2, Plateau State); Creditville Microfinance Bank** (Tier 1, Lagos State); MBAG Microfinance Bank (Tier 1, Lagos State); Straight Sahara Microfinance Bank (Tier 1, Benue State); OurPass Microfinance Bank (Tier 2, Ondo State); Verdant Microfinance Ban (Tier 1, Lagos State); Basawa Microfinance Bank(Tier 2, Kaduna State); Casha Microfinance Bank (Tier 2, FCT Abuja); Esteem Microfinance Bank (Tier 2, Kano State); Entrepreneur Microfinance Bank (Tier 1, Lagos State); and Avantus Microfinance Bank (Tier 2, Osun State).

The latest action underscores the CBN’s continued oversight of the banking sector as it seeks to enforce prudential standards and ensure only financially sound institutions remain in operation.