The Central Bank of Nigeria (CBN) has revoked the operating licences of Merchant Microfinance Bank and 45 others for failing to meet regulatory requirements.
A statement by Hakama Sidi-Ali, acting director of corporate communications, said the revocation took effect from July 1, 2026, under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020. The action was approved by CBN Governor Olayemi Cardoso.
The apex bank cited several grounds for the revocations, including insufficient assets to cover liabilities, unauthorised closure of operations, prolonged inactivity, failure to commence operations within 12 months of licensing, and failure to maintain minimum capital requirements.
The affected institutions span Lagos, Kano, Kaduna, Rivers, Abia, Kwara, Niger, Bayelsa, Kebbi, Ogun, Abuja, Plateau, Delta, Oyo, Cross River, Uyo, Anambra, Benue, Ondo and Osun, cutting across tier 1, tier 2, and state-based microfinance banks.
CBN said the move forms part of ongoing efforts to protect depositors and safeguard financial system stability, adding that supervisory action would continue “where necessary to maintain public confidence in Nigeria’s financial sector.
“In a related development, CBN issued a circular capping the suspension of payment obligations involving troubled banks at a maximum of two business days, under Sections 34(2)(b) and 40(2) of BOFIA. The bank said the clarification removes uncertainty that had complicated commercial risk management for counterparties.
The recapitalisation exercise, which began in March 2024, gave banks until March 31, 2026 to meet new minimum capital thresholds. As of March 6, 2026, only 30 banks had met the requirement.
