By Epiphanus Obia
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks, including fintech-linked lenders NOW NOW Digital Microfinance Bank, Sycamore Microfinance Bank, Creditville Microfinance Bank, OurPass Microfinance Bank and Casha Microfinance Bank, over regulatory breaches.
The revocation, which took effect on July 1, 2026, was approved by CBN Governor Olayemi Cardoso under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
In a statement signed by Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank said the affected institutions failed to meet one or more regulatory requirements required to continue operating as licensed microfinance banks.
According to the CBN, the banks lost their licences for reasons including insufficient assets to cover liabilities, failure to maintain the minimum capital requirement, prolonged inactivity, unauthorised closure of operations, failure to commence business within one year of receiving a licence, and the cessation of financial intermediation.
The regulator said the action forms part of its efforts to protect depositors, strengthen confidence in the financial system and ensure compliance with existing laws and prudential regulations.
“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,” the CBN said.
Besides the fintech-linked institutions, other affected microfinance banks include Merchant MFB, Gold MFB, Apple MFB, Frontline MFB, Safegate MFB, Avantus MFB and Entrepreneur MFB, among others spread across several states.
Following the announcement, Sycamore said the revoked licence belonged to a microfinance bank it acquired in 2024 as part of its expansion plans. The company said it has since obtained a finance company licence from the CBN and that the revocation does not affect its current operations or customer funds.
The latest enforcement action comes as the CBN continues its regulatory crackdown on non-compliant financial institutions, amid broader reforms aimed at strengthening governance, improving financial stability and ensuring licensed institutions meet capital and operational standards.