RismadarVoice Reporters, July 2, 2026
An economist has described the revocation of the operating licences of 46 microfinance banks by the Central Bank of Nigeria (CBN) as an indication of serious regulatory and financial concerns within the affected institutions.
Recall that the RISMADARVOICE reported that the apex bank announced that the licences were withdrawn with effect from July 1, 2026, citing the banks’ failure to comply with regulatory requirements under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
According to the CBN, the action, approved by its Governor, Olayemi Cardoso, followed findings that the affected institutions no longer met the standards required for licensed financial institutions.
The regulator said the deficiencies identified included inadequate assets to meet liabilities, closure of operations without regulatory approval, prolonged inactivity, failure to commence operations within the stipulated period after licensing, and inability to maintain the minimum capital requirement due to accumulated losses.
Speaking on the development, economist and lecturer at the Federal University Dutse, Dr Abdulnasir Turawa Yola, said the CBN would only revoke a bank’s licence after identifying significant shortcomings.
According to him, such deficiencies could range from failure to maintain the required capital base to serious management and corporate governance issues.
Yola also warned that the collapse of financial institutions could expose depositors and investors to financial losses, despite the intervention of the Nigeria Deposit Insurance Corporation.
He explained that while the NDIC provides compensation for depositors, payments may not always cover the full amount of customers’ deposits, noting that creditors are typically settled before depositors, while shareholders are usually the last to receive any remaining assets.
Among the affected institutions are 13 microfinance banks operating in Kano State, including Zain Microfinance Bank, Bompai Microfinance Bank, Ajwa Microfinance Bank, NOW Digital Microfinance Bank, Minjibir Microfinance Bank, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, Tofa Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank and Esteem Microfinance Bank.
The development has generated mixed reactions among residents. While some believe the closures will have limited impact because the banks served relatively small customer bases, others fear the move could reduce access to affordable credit for small businesses.
A small-scale trader, Ibrahim Sulaiman, said microfinance banks have played a vital role in supporting entrepreneurs by providing relatively accessible loans, unlike commercial banks, which often have stricter lending conditions and focus on larger credit facilities.
Efforts to obtain comments from officials of one of the affected microfinance banks were unsuccessful as of the time of filing this report.
