CBN revoke licences of 46 microfinance banks over failure to meet regulatory requirements

The Central Bank of Nigeria (CBN) on Wednesday, July 1, revoked the operating licences of 46 Microfinance Banks (MFBs), citing their failure to meet regulatory requirements for continued operation.

In a statement by Hakama Sidi-Ali, acting director of corporate communications, the apex bank said the revocation took effect from July 1, in line with Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

According to the CBN, the action was approved by its governor, Olayemi Cardoso, in line with the powers conferred on the bank under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.

The CBN said the affected institutions failed to satisfy key regulatory conditions required of licensed financial institutions.

It explained that the licences were withdrawn for one or more reasons, including insufficient assets to meet liabilities, closure of operations without regulatory approval, prolonged inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, and failure to maintain the minimum capital required by law.

“The revocation of the licenses is part of the bank’s ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements.”

“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,” the statement read.

The affected microfinance banks are:

1. Abia SME MFB (Abia)
2. Ajwa MFB (formerly Gezawa MFB) – Kano
3. Apple MFB (Ogun)
4. Avantus MFB (Osun)
5. Basawa MFB (Kaduna)
6. Bejin-Doko MFB (Niger)
7. Bellbank MFB (formerly Tsanyawa MFB) – Kano
8. Bestar MFB (Oyo)
9. Bompai MFB (Kano)
10. Busu MFB (Niger)
11. Casha MFB (Abuja)
12. Chanelle MFB (Lagos)
13. Creditville MFB (Lagos)
14. Creekline MFB (Delta)
15. Crystabel Microfinance Bank (Bayelsa)
16. Digital MFB (Kano)
17. Entrepreneur MFB (Lagos)
18. Esteem MFB (Kano)
19. Frontline MFB (Anambra)
20. Gold MFB (Lagos)
21. Iwade MFB (Ogun)
22. Janmaa MFB (Kwara)
23. Kamba MFB (Kebbi)
24. Kanopoly MFB (Kano)
25. Livingspring MFB (Cross River)
26. MBAG MFB (Lagos)
27. Merchant MFB (Abia)
28. Minji-Se Churchill MFB (Rivers)
29. Minjibir MFB (Kano)
30. Mwaghavul MFB (Plateau)
31. OurPass MFB (Ondo)
32. Rimin Gado MFB (Kano)
33. Safegate MFB (Lagos)
34. Shanono MFB (Kano)
35. Stanford MFB (Akwa Ibom/Uyo)
36. Straight Sahara MFB (Benue)
37. Sumaila MFB (Kano)
38. Supreme MFB (Lagos)
39. Sycamore MFB (Kano)
40. Tofa MFB (Kano)
41. Verdant MFB (Lagos)
42. Winview MFB (Abuja)
43. Yeneng MFB (Plateau)
44. Zafec MFB (Kaduna)
45. Zain MFB (formerly Dawakin Tofa MFB) – Kano
46. Zuru MFB (Kebbi)