CBN Revokes Licenses of 46 Microfinance Banks in Nigeria

The Central Bank of Nigeria (CBN) revoked the operating licenses of 46 microfinance banks as part of a regulatory crackdown, effective July 1, 2026. This decision, approved by CBN Governor Mr.

Olayemi Cardoso, follows a supervisory review revealing various operational deficiencies, including insufficient assets to meet liabilities and unauthorized business closures. The Nigeria Deposit Insurance Corporation (NDIC), represented by Hawwau Gambo, advised the public against unauthorized transactions with the affected banks and emphasized the legal consequences of interfering with bank assets.

The CBN's actions are part of a broader effort to ensure compliance with financial regulations and safeguard the stability of Nigeria's financial sector. This mass revocation is expected to trigger a wave of consolidation among microfinance institutions and shift retail banking deposits across the country, as the CBN maintains a zero-tolerance policy towards weak corporate governance and chronic undercapitalization.