See affected banks below
By Emmanuel Thomas I Wednesday, July 02. 2026
ABUJA — The Central Bank of Nigeria (CBN) has abruptly revoked the operating licenses of 46 microfinance banks, triggering a major consolidation wave in the country’s vast but fragmented tier-two financial sector.
The enforcement action, which took effect immediately on July 1, 2026, marks the most aggressive regulatory intervention by CBN Governor Olayemi Cardoso since his sweeping recapitalization order for the country’s commercial lenders earlier this year.
It signals that the central bank’s drive for absolute systemic stability will spare neither top-tier investment houses nor grassroots lenders.
According to official directives signed by Hakama Sidi-Ali, the CBN’s acting director of corporate communications, the revocations were executed under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
The central bank’s audit of the affected microfinance institutions exposed systemic vulnerabilities that have long plagued the perimeter of Nigeria’s banking system. The regulator cited multiple regulatory breaches as grounds for the crackdown, including:
Balance Sheet Insolvency: Insufficient baseline assets to cover maturing liabilities.
Unapproved Cessation: The abrupt closure of physical branches without obtaining regulatory clearance.
Operational Dormancy: Prolonged operational inactivity and a complete shutdown of financial intermediation services.
Capital Erosion: A pervasive failure to maintain the mandatory minimum capital funds unimpaired by accumulated losses.
The list of defunct institutions reveals a wide geographic and structural fallout. Out of the 46 shuttered firms, 25 were classified as Tier 2 microfinance operations, 18 as Tier
1, and three operated with broader regional State licenses.
Geographically, Kano state bore the brunt of the enforcement with 13 bank closures, followed closely by Lagos—the country’s economic hub—where eight institutions, including high-profile digital-facing players like Now Now Digital MFB, Creditville MFB, and Ourpass MFB, were shut down.
Macroeconomic headwinds trigger a grassroots squeeze
The mass revocations highlight the acute macro pressures filtering through Africa’s most populous nation.
For nearly two years, microfinance banks have battled severe stress, squeezed between aggressive tightening cycles by the CBN’s Monetary Policy Committee and an inflationary environment that has severely eroded the purchasing power of their core clientele.
Microfinance institutions in Nigeria primarily cater to market traders, smallholder farmers, and small and medium-sized enterprises (SMEs) that lack access to traditional commercial banking credit lines.
However, as soaring food and fuel costs push delinquency rates higher, many smaller grassroots institutions have watched their non-performing loan (NPL) ratios balloon, quickly evaporating their thinly stretched capital cushions.
Analysts say the central bank’s patience simply ran out.
“The macro environment has been brutal, but regulatory forbearance can only go so far,” said an institutional financial analyst based in Lagos.
“Many of these institutions had effectively turned into zombie banks. They were unable to lend, unable to return customer deposits on demand, and were relying on structural loopholes to keep their doors nominally open.”
Within hours of the CBN’s announcement, the Nigeria Deposit Insurance Corporation (NDIC) moved swiftly to contain potential panic. The corporation announced its appointment as the official liquidator of all 46 failed lenders, pursuant to the statutory mandates of the NDIC Act 2023.
The NDIC confirmed it has mobilized field teams to effect the immediate physical takeover of the banks, secure all accounting records, and begin verifying depositor balances.
Under the updated regulatory framework, the NDIC will pay out up to ₦2,000,000 in guaranteed insured deposits per customer, a threshold recently increased to protect small-scale savers from total financial ruin.
The corporation explicitly warned executives, shareholders, and debtors of the affected institutions against attempting to conceal or alter asset registries, noting that any unauthorized interference would lead to immediate criminal prosecution.
The clampdown forms part of Governor Cardoso’s broader policy to clean up the financial sector and restore institutional confidence. Since taking office, the governor has emphasized a return to orthodox central banking, focusing squarely on price stability, rigorous market supervision, and corporate governance compliance.
For Nigeria’s wider economy, the shrinkage of the microfinance space presents a distinct policy dilemma. While a cleaner, strictly regulated banking space mitigates systemic contagion risks, it simultaneously threatens to widen the financial exclusion gap for millions of unbanked citizens in peripheral and rural communities.
The CBN, however, remains resolute. “The Central Bank of Nigeria remains committed to promoting a safe, sound, and resilient financial system,” Sidi-Ali stated. “We will continue to take appropriate supervisory and regulatory actions, where necessary, to maintain total public confidence.”
For a comprehensive video breakdown of the affected financial institutions and the immediate steps layout for depositors seeking refunds, watch this analytical report detailing the CBN microfinance license revocation crisis.
This broadcast provides essential context regarding the list of affected branches and the legal mechanisms activated under BOFIA 2020.
Here is the complete official registry of the 46 microfinance banks whose operating licenses were revoked by the Central Bank of Nigeria (CBN).
The list spans across Tier 1, Tier 2, and State-wide institutions as detailed by the Nigeria Deposit Insurance Corporation (NDIC).
1Minji-Se Churchill MFBTier 1Rivers
2Merchant MFBTier 2Abia
3Janmaa MFBTier 1Kwara
4Busu MFBTier 2Niger
5Gold MFBTier 1Lagos
6Zain MFB (formerly Dawakin Tofa MFB)Tier 2Kano
7Bompai MFBTier 1Kano
8Ajwa MFB (formerly Gezawa MFB)Tier 2Kano
9Now Now Digital MFBTier 2Kano
10Crystabel Microfinance BankTier 1Bayelsa
11Chanelle MFBStateLagos
12Abia SME MFBTier 1Abia
13Kamba MFBTier 2Kebbi
14Iwade MFBTier 2Ogun
15Winview MFBTier 1Abuja (FCT)
16Zuru MFBTier 2Kebbi
17Minjibir MFBTier 1Kano
18Shanono MFBTier 2Kano
19Sumaila MFBTier 2Kano
20Rimin Gado MFBTier 2Kano
21Mwaghavul MFBStatePlateau
22Sycamore MFBTier 2Kano
23TOFA MFBTier 2Kano
24Safegate MFBTier 1Lagos
25Creekline MFBTier 2Delta
26Bestar MFBTier 1Oyo
27Livingspring MFBTier 1Cross River
28Apple MFBTier 2Ogun
29Stanford MFBStateAkwa Ibom (Uyo)
30Frontline MFBTier 2Anambra
31Zafec MFBTier 2Kaduna
32Supreme MFBTier 1Lagos
33Bejin-Doko MFBTier 2Niger
34Kanopoly MFBTier 1Kano
35Bellbank MFB (formerly Tsanyawa MFB)Tier 2Kano
36Yeneng MFBTier 2Plateau
37Creditville MFBTier 1Lagos
38Mbag MFBTier 1Lagos
39Straight Sahara MFBTier 1Benue
40Ourpass MFBTier 2Ondo
41Verdant MFBTier 1Lagos
42Basawa MFBTier 2Kaduna
43Casha MFBTier 2Abuja (FCT)
44Esteem MFBTier 2Kano
45Enterpreneur MFBTier 1Lagos
46Avantus MFBTier 2Osun