The Central Bank of Nigeria (CBN) has revoked the operating licences of Merchant Microfinance Bank and 45 other microfinance banks for failing to meet the regulatory requirements needed to continue operations.
The apex bank disclosed the decision in a statement issued on Wednesday by its Acting Director of Corporate Communications, Hakama Sidi-Ali, stating that the revocation took effect from July 1, 2026, 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, as part of efforts to protect the stability of the financial system, safeguard depositors’ funds, and enforce compliance with regulatory standards.
“According to the revocation order, the action became necessary because of one or more of the circumstances: Insufficient assets to meet liabilities, closure of operations without the CBN approval, Inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, and failure to maintain minimum capital funds unimpaired by losses,” the CBN said.
The bank further stated: “The revocation of the licences 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.”
It reiterated its commitment to maintaining a safe and resilient financial system, adding that it will continue to take supervisory and regulatory actions where necessary to sustain public confidence in Nigeria’s banking sector.
The affected institutions include Minji-Se Churchill MFB (tier 1) in Rivers, Merchant MFB (tier 2) in Abia, Janmaa MFB (tier 1) in Kwara, Busu MFB (tier 2) in Niger, Gold MFB (tier 1) in Lagos, Zain MFB (formerly Dawakin Tofa MFB) in Kano, Bompai MFB, Ajwa MFB, Now Now Digital MFB, Crystabel Microfinance Bank, among others across various states.
Other affected institutions include Chanelle MFB, Abia SME MFB, Kamba MFB, Iwade MFB, Winview MFB, Zuru MFB, Minjibir MFB, Shanono MFB, Sumaila MFB, Rimin Gado MFB, Mwaghavul MFB, Sycamore MFB, TOFA MFB, Safegate MFB, Creekline MFB, Bestar MFB, Livingspring MFB, Apple MFB, Stanford MFB, Frontline MFB, Zafec MFB, Supreme MFB, Bejin-Doko MFB, Kanopoly MFB, Bellbank MFB (formerly Tsanyawa MFB), Yeneng MFB, Creditville MFB, MBAG MFB, Straight Sahara MFB, Our Pass MFB, VERDANT MFB, Basawa MFB, Casha MFB, Esteem MFB, Enterpreneur MFB and Avantus MFB.
The development follows the CBN’s earlier directive in March 2024, when it increased minimum capital requirements for banks and gave operators until March 31, 2026, to comply. On March 6, 2026, the regulator had announced that 30 banks successfully met the new capital threshold.
