The Central Bank of Nigeria (CBN) has officially pulled the operating licenses of 46 microfinance banks nationwide, citing an inability to satisfy mandatory regulatory benchmarks. Governor Olayemi Cardoso authorized the directive, effective July 1, 2026, invoking Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) of 2020. Among the affected institutions are 13 banks located in Kano, including entities like Zain MFB and Sycamore MFB.
Official records indicate these institutions suffered from various failures, ranging from an inability to cover liabilities with assets to long-term inactivity and the failure to reach required capital thresholds. Dr. Abdulnasir Turawa Yola, an economist at the Federal University Dutse, noted that such decisive measures by the apex bank indicate profound institutional or governance flaws. He cautioned that depositors and investors face genuine risks, as Nigeria Deposit Insurance Corporation (NDIC) payouts may not cover total losses for all stakeholders.
The impact is being felt by small-scale business owners, who rely on these banks for accessible credit. Local entrepreneurs expressed concern that the closure removes a vital source of small-scale loans that traditional commercial banks rarely provide. As of now, representatives from the affected microfinance banks have not provided public responses regarding the shutdowns.
