CBN Revokes 46 MFB Licences, Including NowNow and Sycamore

In Short

The Central Bank of Nigeria has revoked the operating licences of 46 microfinance banks.

Fintech-linked names on the list include NowNow, Sycamore, Creditville, OurPass and Casha.

The revocations take effect from July 1, 2026.

What Happened

The Central Bank of Nigeria (CBN) says it has revoked the operating licences of 46 microfinance banks. Microfinance banks, often called MFBs, are regulated lenders that take deposits and make small loans, mainly for individuals and SMEs.

The regulator cited three main reasons. One was that some banks did not have enough assets to cover liabilities, meaning what they own could not match what they owe. Another was that some institutions shut down operations without CBN approval. The third was prolonged inactivity, which the CBN described as a cessation of “financial intermediation”, in simple terms, no longer taking deposits and lending in the normal way.

The list includes microfinance banks linked to Nigerian fintech startups. These include NowNow, Sycamore, Creditville and Casha Bank.

The CBN said the action was approved by Governor Olayemi Cardoso and issued under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA) 2020. BOFIA is the law that gives the CBN powers to license and supervise banks, and to withdraw licences when banks breach key requirements.

Why It Matters

For customers, a licence revocation can affect access to accounts, deposits, and loan servicing channels. It also creates uncertainty for businesses that used these MFBs for savings products, agent banking, or credit.

For fintech founders, the move is another signal that Nigeria’s banking regulator is tightening enforcement around capital adequacy, reporting, and ongoing operations. Capital adequacy is a basic safety buffer, it is the money a regulated financial institution must keep to absorb losses.

For investors and partners, the event raises due diligence pressure on any fintech operating through an MFB structure or an acquired microfinance licence. It may also accelerate a shift toward stronger compliance teams, clearer governance, and more conservative balance sheet management across Nigeria’s fintech and microfinance sector.