Nigeria Central Bank Revokes 46 Microfinance Licenses Amid Liquidation Wave

LAGOS — The Central Bank of Nigeria (CBN) has revoked the operating licenses of 46 microfinance banks effective July 1, 2026, triggering an immediate shutdown and liquidations by federal deposit insurers.

The regulatory crackdown, authorized by CBN Governor Olayemi Cardoso, targets institutions facing severe undercapitalization, unauthorized operational closures, and prolonged cessation of financial intermediation across 18 states and the Federal Capital Territory.

“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,” CBN stated in statement on Wednesday.

Macroeconomic Pressures Trigger Structural Failures

The mass closures come as Nigeria’s microfinance sub-sector battles persistent macroeconomic headwinds, including elevated inflation and high borrowing costs that have severely eroded asset quality and impaired minimum capital thresholds.

The Nigeria Deposit Insurance Corporation (NDIC) said on Wednesday it has assumed control as the official liquidator, sealing physical premises and commencing automated verification systems to disburse insured funds to displaced depositors.

Geographic data reveals Kano State suffered the highest casualty rate with 13 revoked licenses, closely followed by commercial hub Lagos State with 8 closures, reflecting regional vulnerabilities.

Official List of Affected Microfinance Banks

The full regulatory list encompasses Tier 1, Tier 2, and State-level microfinance institutions (MFBs):

Regulatory Warning: The NDIC has strongly advised the public against unauthorized transactions with these entities. Interference with records or asset removal remains a statutory violation punishable under federal banking laws.