The Governor of the Central Bank of Nigeria, Olayemi Cardoso, and senior officials of the Nigeria Deposit Insurance Corporation (NDIC) on Wednesday, July 1, 2026, activated a sweeping regulatory intervention as the NDIC commenced liquidation of 46 microfinance banks following the revocation of their operating licences by the Central Bank of Nigeria.
The move represents one of the most significant clean-up exercises in Nigeria’s financial sector in recent years, affecting institutions spread across multiple states and digital lending platforms.
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Also read: The move represents one of the most significant clean-up exercises in Nigeria’s financial sector in recent years, affecting institutions spread across multiple states and digital lending platforms.
The Central Bank of Nigeria said the licences were withdrawn due to persistent regulatory breaches, including capital inadequacy, operational inactivity, failure to meet minimum capital requirements, and sustained non-compliance with prudential guidelines.
Among the affected institutions are Minji-Se Churchill Microfinance Bank, Merchant Microfinance Bank, Janmaa Microfinance Bank, Busu Microfinance Bank, Gold Microfinance Bank, Zain Microfinance Bank, Bompai Microfinance Bank, Ajwa Microfinance Bank, NOW NOW Digital Microfinance Bank, Crystabel Microfinance Bank, Chanelle Microfinance Bank, and Abia SME Microfinance Bank.
Others include Kamba Microfinance Bank, Iwade Microfinance Bank, Winview Microfinance Bank, Zuru Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Mwaghavul Microfinance Bank, Sycamore Microfinance Bank, Tofa Microfinance Bank, and Safegate Microfinance Bank.
Also affected are Creekline Microfinance Bank, Bestar Microfinance Bank, Livingspring Microfinance Bank, Apple Microfinance Bank, Stanford Microfinance Bank, Frontline Microfinance Bank, Zafec Microfinance Bank, Supreme Microfinance Bank, Bejin-Doko Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank, and Yeneng Microfinance Bank.
Creditville Microfinance Bank, MBAG Microfinance Bank, Straight Sahara Microfinance Bank, OurPass Microfinance Bank, Verdant Microfinance Bank, Basawa Microfinance Bank, Casha Microfinance Bank, Esteem Microfinance Bank, Entrepreneur Microfinance Bank, and Avantus Microfinance Bank were also listed among the affected institutions.
Following the revocation, the NDIC was appointed liquidator under the Banks and Other Financial Institutions Act 2020 and the NDIC Act 2023, formally taking charge of winding down the institutions and safeguarding eligible depositors.
NDIC spokesperson Hawwau Gambo warned against any interference with the assets, records, or operations of the closed banks.
“Members of the public are strongly advised against any unauthorised transaction with the closed banks, or any attempt to remove, conceal, retain, or interfere with the assets, records, or properties of the banks,” she said.
The NDIC said it has commenced depositor verification and payout preparations, using branches of the affected banks as verification centres under the deposit insurance framework.
The Central Bank said the action followed sustained supervisory assessments that revealed deep financial distress and repeated violations of regulatory standards across the affected institutions.
“The revocation of the licences is part of the Bank’s ongoing efforts to safeguard financial stability, protect depositors, and ensure compliance with existing laws,” the apex bank said.
Financial analysts say the move reflects a broader tightening of oversight under the current Central Bank leadership aimed at restoring confidence in Nigeria’s banking system.
However, stakeholders have raised concerns that the shutdown of 46 institutions could temporarily disrupt access to microcredit, particularly for small businesses, traders, and rural borrowers who rely heavily on microfinance services.
Despite these concerns, regulators insist the action is necessary to prevent systemic risk and strengthen long-term stability in the financial sector.
The NDIC has assured depositors that eligible customers will be reimbursed under statutory deposit insurance limits, with verification and payment processes expected to roll out in phases.
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Attention now turns to how quickly the Microfinance Banks Revocation process can be resolved, and how effectively NDIC can restore confidence among low-income financial users dependent on microfinance institutions.
Victory Emmanuel is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.
