CBN Revokes Licences of 46 Microfinance Banks, NDIC Begins Liquidation

The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 Microfinance Banks (MFBs) across the country, with the Nigeria Deposit Insurance Corporation (NDIC) appointed as the official liquidator to oversee their orderly closure and the payment of insured deposits to eligible customers.

The revocation, which took effect on July 1, 2026, was announced in line with the provisions of Section 12(2) of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Sections 55(1) and (2) of the NDIC Act 2023.

In a statement issued by the Head of Communication and Public Affairs Department of the NDIC, Hawwau Gambo, the Corporation said it had immediately assumed responsibility for the liquidation of the affected banks and had commenced the process of taking over their assets, verifying depositors and paying insured sums to eligible customers.

The NDIC warned that the affected institutions have ceased to be authorised to carry out banking operations in Nigeria, urging depositors and members of the public to refrain from conducting any transactions with the closed banks.

It also cautioned against any attempt by individuals or groups to remove, conceal, retain or tamper with the assets, records or properties of the failed institutions, stressing that such actions constitute violations of the law and could attract legal sanctions.

"The Corporation has commenced the process of the orderly closure of the failed banks with their immediate takeover, verification and payment of insured sums to eligible depositors," the statement said.

The NDIC assured depositors that it would continue to provide updates on the liquidation process and other necessary steps as the exercise progresses.

The affected institutions are spread across several states, including Lagos, Kano, Abuja, Abia, Rivers, Ogun, Niger, Kebbi, Kaduna, Plateau, Benue, Osun, Ondo, Cross River, Bayelsa, Delta, Anambra, Oyo and Kwara.

Among the banks whose licences were revoked are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Safegate Microfinance Bank, Entrepreneur Microfinance Bank, Verdant Microfinance Bank, Merchant Microfinance Bank, Janmaa Microfinance Bank, Bompai Microfinance Bank, Sycamore Microfinance Bank, Now Now Digital Microfinance Bank, Apple Microfinance Bank and Avantus Microfinance Bank.

Others include Crystabel Microfinance Bank, Straight Sahara Microfinance Bank, OurPass Microfinance Bank, Casha Microfinance Bank, Esteem Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank, Minji-Se Churchill Microfinance Bank and several others, bringing the total number of affected institutions to 46.

The regulator said the liquidation exercise is aimed at protecting depositors and ensuring an orderly resolution of the failed financial institutions in accordance with existing banking and deposit insurance laws.