CBN Revokes Licences of 46 Microfinance Banks, Including NowNow, Sycamore and OurPass
The Central Bank of Nigeria (CBN) has revoked the operating licences of 46 microfinance banks, including fintech-linked institutions such as NOW NOW Digital Microfinance Bank, Sycamore Microfinance Bank, and OurPass Microfinance Bank.
The revocation officially took effect on July 1, 2026, preventing the affected institutions from continuing operations as licensed microfinance banks in Nigeria.
Fintech-Linked Lenders Among Those Affected
The decision has attracted significant attention because several of the affected institutions were connected to well-known fintech companies offering digital banking, lending, payment processing, and financial services.
Although the revocation does not necessarily mean the parent fintech companies have ceased operations entirely, it raises important questions regarding their ability to continue offering regulated financial products.
Why the CBN Revoked the Licences
According to the apex bank, the affected institutions failed to comply with regulatory requirements outlined under the Banks and Other Financial Institutions Act (BOFIA) 2020.
The regulator cited multiple compliance failures.
| Regulatory Violation | Description |
|---|---|
| Insufficient capital | Failure to meet minimum capital requirements |
| Asset deficiencies | Inadequate assets to cover liabilities |
| Operational inactivity | Extended periods without business operations |
| Unauthorized closure | Suspension of services without approval |
| Failure to commence operations | Institutions that never fully launched |
| Cessation of financial intermediation | Failure to provide core banking services |
The CBN stated that the action forms part of its broader effort to strengthen Nigeria’s financial system, protect depositors, and ensure compliance across the banking industry.
Part of a Broader Regulatory Crackdown
The latest action follows several regulatory enforcement measures implemented by the CBN in recent years.
In December 2025, the regulator revoked licences belonging to multiple primary mortgage institutions over compliance failures. Since assuming office in 2023, CBN Governor Olayemi Cardoso has consistently emphasized stronger regulation, financial stability, and institutional accountability.
What Happens Next for Affected Fintech Companies?
Industry observers expect affected companies to explore several options, including:
- Challenging the decision legally
- Applying for fresh regulatory licences
- Restructuring their business models
- Partnering with already licensed financial institutions
For Nigeria‘s rapidly expanding fintech ecosystem, the development serves as another reminder that innovation and market popularity cannot replace regulatory compliance. As competition intensifies within the digital financial services sector, regulatory oversight is expected to remain a major focus area.
