Why 46 Microfinance Banks Had Their Licenses Withdrawn in Nigeria

The Central Bank of Nigeria (CBN) has officially revoked the operating licenses of 46 microfinance banks (MFBs), effective July 1, 2026.This decision, approved by CBN Governor Olayemi Cardoso, arises from non-compliance with regulatory standards. The revocation, which aims to safeguard depositors, was prompted by factors such as insufficient assets, dormant operations, and failure to satisfy minimum capital requirements.In a statement signed by Sidi-Ali Halama (Mrs), the Acting Director of the Corporate Communications Department of the apex bank, it was stated, “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,”  Numerous institutions, including NOW NOW Digital MFB, Sycamore MFB, among others, have been affected, with the complete list accessible on the CBN website. The Nigeria Deposit Insurance Corporation (NDIC) is overseeing the liquidation process to ensure compensation for depositors.