CBN revokes licences of Merchant Microfinance bank, 45 others
The Central Bank of Nigeria (CBN) has revoked the operating licences of Merchant Mictofinance Bank as well as 45 others due to their failure to meet regulatory requirements for continued operation. In a statement on Wednesday by Hakama Sidi-Ali, acting director of corporate communications, the apex bank said the revocation took effect from July 1, […]
The Central Bank of Nigeria (CBN) has revoked the operating licences of Merchant Mictofinance Bank as well as 45 others due to their failure to meet regulatory requirements for continued operation.
In a statement on Wednesday by Hakama Sidi-Ali, acting director of corporate communications, the apex bank said 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.
The CBN said the action was approved by Olayemi Cardoso, the apex bank governor, as part of efforts to safeguard the stability of the financial system, protect depositors and ensure 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,” CBN said.
“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 statement added.
CBN added that it remains committed to promoting a safe, sound and resilient financial system and would continue to take supervisory and regulatory actions where necessary to maintain public confidence in Nigeria’s financial sector.
The affected microfinance banks are “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, a tier 2 lender in Kano, Bompai MFB (tier 1) in Kano. Ajwa MFB (tier 2) in Kano. Now Now Digital MFB (tier 2) in Kano and. rystabel Microfinance Bank (tier 1) in Bayelsa.
Others include “Chanelle MFB (state-based) in Lagos, Abia SME MFB (tier 1) in Abia, Kamba MFB (tier 2) in Kebbi, Iwade MFB (tier 2) in Ogun, Winview MFB (tier 1) in Abuja, Zuru MFB (tier 2) in Kebbi, Minjibir MFB (tier 1) in Kano, Shanono MFB (tier 2) in Kano, Sumaila MFB (tier 2) in Kano, Rimin Gado MFB (tier 2) in Kano, Mwaghavul MFB (state-based) in Plateau, Sycamore MFB (tier 2) Kano, TOFA MFB (tier 2) in Kano and Safegate MFB (tier 1) in Lagos.
Also in the list are Creekline MFB (tier 2) in Delta, Bestar MFB (tier 1) in Oyo, Livingspring MFB (tier 1) in Cross River, Apple MFB (tier 2) in Ogun, Stanford MFB (state-based) in Uyo, Frontline MFB (tier 2) in Anambra, Zafec MFB (tier 2) in Kaduna, Supreme MFB (tier 1) in Lagos, Bejin-Doko MFB (tier 2) in Niger, Kanopoly MFB (tier 1) in Kano, Bellbank MFB, formerly Tsanyawa (Tier 2), in Kano, Yeneng MFB (tier 2) in Plateau, Creditville MFB (tier 1) in Lagos and MBAG MFB (tier 1) in Lagos.
Similarly, Straight Sahara MFB (tier 1) in Benue, Our Pass MFB (tier 2) in Ondo, VERDANT MFB (tier 1) in Lagos, Basawa MFB (tier 2) in Kaduna, Casha MFB (tier 2) in Abuja, Esteem MFB (tier 2) in Kano, Enterpreneur MFB (tier 1) in Lagos and Avantus MFB (tier 2) in Osun are also in the list.
In March 2024, CBN increased the capital base for banks, giving them until March 31, 2026, to meet the requirements.
On March 6, 2026, the financial regulator said 30 banks have met the minimum capital requirement.
…suspends payment obligation involving troubled banks for 2days
In another development, the CBN has issued new guidance limiting the suspension of payment obligations involving troubled banks and other financial institutions to a maximum period of two business days.
This means the regulator can suspend payment obligations in which a troubled bank is party to for only two days.
In a circular dated July 1 and addressed to all banks and other financial institutions, the apex bank said the clarification is intended to remove uncertainty surrounding the implementation of Sections 34(2)(b) and 40(2) of the Banks and Other Financial Institutions Act (BOFIA), 2020.
Section 34(2) (b) of the BOFIA, 2020 allows the CBN governor to suspend any payment or delivery obligations under any contract to which a failing bank is a party, while Section 40(2) empowers him to suspend the right of counterparties to terminate certain financial contracts involving a bank that is under resolution.
In the latest circular, the regulator said the absence of a defined maximum duration for exercising the powers granted under the provisions had created uncertainty for counterparties dealing with Nigerian banks, with the potential to hinder effective commercial risk management.
According to the circular, where the CBN suspends payment or delivery obligations under an affected contract involving a failing bank, or temporarily prevents the termination of financial contracts during the resolution of a troubled financial institution, such suspension must not exceed two business days.
“The suspension of any payment or delivery obligation under an Affected Contract, pursuant to Section 34(2)(b) of the BOFIA, in relation to a failing bank or other financial institution; and the exercise of any termination right under an Affected Contract to which Section 40(1) of the BOFIA applies, pursuant to Section 40(2) of the BOFIA in relation to a Classified as Confidential bank or other financial institution that is a subject or proposed subject of a resolution measure, shall not exceed a period of two business days commencing from the date on which the written order or notice of suspension is issued by the CBN Governor,” the circular reads.
The apex bank said the guidance applies to all “affected contracts” defined as contracts involving a bank or other financial institution that fall within the scope of Sections 34(2)(b) or 40(2) of BOFIA.