In a statement issued on Wednesday by Acting Director of Corporate Communications, Hakama Sidi-Ali, the apex bank said the decision took effect on July 1, 2026, following approval by CBN Governor Olayemi Cardoso. According to the CBN, the action was taken under the provisions of the Banks and Other Financial Institutions Act (BOFIA) 2020, after the affected institutions were found to have breached key regulatory obligations. The regulator said the banks were sanctioned for various reasons, including inadequate assets to cover liabilities, shutting down operations without regulatory approval, remaining inactive for extended periods, failing to begin operations within the stipulated period after licensing, and not maintaining the minimum capital required by law. The affected institutions cut across Tier 1, Tier 2 and State microfinance banks located in several states, including Lagos, Kano, the FCT, Abia, Ogun, Kaduna, Niger, Plateau, Rivers, Bayelsa, Benue, Cross River, Delta, Kebbi, Kwara, Ondo, Osun, Oyo and Anambra. Among the affected banks are Gold Microfinance Bank, Creditville Microfinance Bank, Supreme Microfinance Bank, Winview Microfinance Bank, Merchant Microfinance Bank, Safegate Microfinance Bank and NOW NOW Digital Microfinance Bank. Others in Kano include Bompai, Minjibir, Shanono, Sumaila, Rimin Gado, Sycamore, TOFA, Kanopoly and Esteem Microfinance Banks. The CBN said the move is part of its ongoing efforts to strengthen oversight of the financial sector, protect depositors and ensure all licensed institutions comply with applicable laws and prudential guidelines. The apex bank also reaffirmed its commitment to maintaining a stable, safe and resilient financial system through continued supervisory and enforcement actions where necessary. Meanwhile, the Nigeria Deposit Insurance Corporation (NDIC) recently assured Nigerians that more than 281 million depositors remain protected against bank failures. According to NDIC Managing Director and Chief Executive Officer Thompson Sunday, the corporation currently provides deposit insurance coverage for 914 licensed financial institutions, with over 98 percent of depositors fully covered under the revised insurance limits introduced in May 2024. Affected Microfinance Banks 1. Gold Microfinance Bank 2. Creditville Microfinance Bank 3. Supreme Microfinance Bank 4. Winview Microfinance Bank 5. Merchant Microfinance Bank 6. Safegate Microfinance Bank 7. NOW NOW Digital Microfinance Bank 8. Bompai Microfinance Bank 9. Minjibir Microfinance Bank 10. Shanono Microfinance Bank 11. Sumaila Microfinance Bank 12. Rimin Gado Microfinance Bank 13. Sycamore Microfinance Bank 14. TOFA Microfinance Bank 15. Kanopoly Microfinance Bank 16. Esteem Microfinance Bank 17. and 30 other affected microfinance banks listed in the CBN revocation notice.