Central Bank of Nigeria Revokes 46 Microfinance Bank Licenses

The Central Bank of Nigeria revoked the operating licenses of 46 microfinance banks effective July 1, 2026, reducing the total number of licensed microfinance banks in the country from 831 to 785. Approved by Governor Olayemi Cardoso under the Banks and Other Financial Institutions Act 2020, the action targeted institutions that failed to meet minimum capital requirements, lacked sufficient assets to meet liabilities, or remained inactive after licensure.

The revocations primarily affected banks in Kano and Lagos. Among the affected entities were Creditville, Gold, Merchant, and NowNow Digital Microfinance Banks. Sycamore Microfinance Bank stated its revocation stemmed from legacy compliance issues regarding a Kano-based entity it had acquired, asserting that its other customer funds remain secure.

To manage the fallout, the Nigeria Deposit Insurance Corporation was appointed as the official liquidator. The corporation has begun taking over the failed banks and verifying claims to pay insured deposits, which are covered up to N2 million per depositor. The agency warned the public against unauthorized transactions with the closed banks or tampering with their assets.

While the central bank maintains the move is necessary to safeguard financial stability, Uju Ogunbunka of the Bank Customers’ Association of Nigeria warned that the closures could disrupt credit for small businesses and undermine financial inclusion, particularly for rural customers.