• Withdraws operating licences

The Central Bank of Nigeria (CBN) has withdrawn the operating licences of 46 microfinance banks across the country, saying the affected institutions failed to meet the conditions required to continue operating as licensed financial institutions.

The decision took effect on July 1, 2026, following approval by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso.

A statement issued today by the Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi-Ali, said the action was taken under the provisions of Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, which empowers the apex bank to withdraw the licences of financial institutions that fail to comply with regulatory requirements.

According to the CBN, the affected banks were found to have breached one or more of the conditions required for continued operation.

The regulator explained that some of the institutions no longer had enough assets to cover their liabilities, while others shut down operations without obtaining approval from the Central Bank. It also said several of the banks had stopped carrying out financial intermediation, failed to begin operations within one year after receiving their licences, or could no longer maintain the minimum capital required by law because of accumulated losses.

“The revocation was approved by the Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, following the banks’ failure to meet the regulatory requirements for continued operation as licensed financial institutions,” the statement said.

The affected institutions are Minji-Se Churchill Microfinance Bank in Rivers State, Merchant Microfinance Bank and Abia SME Microfinance Bank in Abia State, Janmaa Microfinance Bank in Kwara State, Busu Microfinance Bank and Bejin-Doko Microfinance Bank in Niger State, Gold Microfinance Bank, Chanelle Microfinance Bank, Safegate Microfinance Bank.

Others are, Supreme Microfinance Bank, Creditville Microfinance Bank, MBAG Microfinance Bank, Verdant Microfinance Bank and Entrepreneur Microfinance Bank in Lagos State, Zain Microfinance Bank (formerly Dawakin Tofa Microfinance Bank), Bompai Microfinance Bank, Ajwa Microfinance Bank (formerly Gezawa Microfinance Bank), Now Now Digital Microfinance Bank, Minjibir Microfinance Bank.

Also affected by the decision of the CBN are, Shanono Microfinance Bank, Sumaila Microfinance Bank, Rimin Gado Microfinance Bank, Sycamore Microfinance Bank, Tofa Microfinance Bank, Kanopoly Microfinance Bank, Bellbank Microfinance Bank (formerly Tsanyawa Microfinance Bank) and Esteem Microfinance Bank in Kano State, Crystabel Microfinance Bank in Bayelsa State, Kamba Microfinance Bank and Zuru Microfinance Bank in Kebbi State.

Iwade Microfinance Bank and Apple Microfinance Bank in Ogun State, Winview Microfinance Bank and Casha Microfinance Bank in the Federal Capital Territory, Mwaghavul Microfinance Bank and Yeneng Microfinance Bank in Plateau State, Creekline Microfinance Bank in Delta State, Bestar Microfinance Bank in Oyo State, Livingspring Microfinance Bank in Cross River State, Stanford Microfinance Bank in Akwa Ibom State all had their licences withdrawn.

The CBN hammer also fell on Frontline Microfinance Bank in Anambra State, Zafec Microfinance Bank and Basawa Microfinance Bank in Kaduna State, Straight Sahara Microfinance Bank in Benue State, OurPass Microfinance Bank in Ondo State, and Avantus Microfinance Bank in Osun State.

The apex bank said the exercise forms part of its ongoing efforts to strengthen Nigeria’s financial system by ensuring that only institutions that comply with banking regulations remain in operation.

It added that removing non-compliant institutions from the financial system would help protect depositors, promote stability in the banking sector and improve public confidence in licensed financial institutions.

The CBN said it remains committed to maintaining a safe, sound and resilient financial system and would continue to take supervisory and regulatory measures whenever necessary to ensure that banks and other financial institutions operate in line with existing laws and regulatory standards.

Industry observers say the latest action reflects the Central Bank’s resolve to tighten oversight of financial institutions and enforce compliance with prudential requirements aimed at safeguarding customers’ funds and preserving confidence in Nigeria’s banking sector.

The Nigerian naira rallied at the forex market after the Central Bank (CBN) topped up FX sales amidst rising external reserves, which continues to boost investors’ and the market’s confidence in the exchange rate outlook.
The official exchange rate saw a sharp daily gain, reflecting a stronger US dollar volume available for closing eligible foreign transactions. Sources said the Apex Bank injected dollars into FX market, though official data has not been made available to know the size.
The CBN sold an additional $150 million on Friday, which was not captured, bringing last week’s total intervention to $400 million. According to updated data from the Central Bank of Nigeria (CBN), the official spot FX rate appreciated by 0.52% per dollar to close at N1,446.32 from N1453.84 per dollar the previous day.
The exchange rate at the official window touched an intraday high of N1455, a significant improvement from N1462.5000 that was quoted for international payment in the previous day.
FX traders in some of the leading investment and commercial banks said the exchange rate briefly touch N1441 on the day, the lowest FX quoted for international payments on Tuesday.
The trading pattern reflected the absence of significant pressures on the local currency, signalling FX liquidity boost as the Central Bank maintained its stance on market intervention.
The naira, however, fell by 1.30% to N1,475 per dollar in the parallel market, highlighting diverging dynamics between the tightly managed official segment and the more demand-driven black market.
Nigeria’s foreign reserves expanded to $44.459 billion on Monday amidst sustained FX inflows across sources, including oil sales and remittances. Month to date, gross external reserves surged by $1,262 billion, from $43.197 billion at the end of October.

By Grace Edet

The Central Bank of Nigeria (CBN) has released the latest savings deposit rates for Deposit Money Banks (DMBs) and Merchant Banks, reflecting recent monetary policy adjustments following a reduction in the Monetary Policy Rate (MPR) to 27.5 per cent.
According to the CBN’s data published as of October 31, 2025, the average savings deposit rate across the banking industry rose to 8.25%, up from 7.88% in the previous period — signaling modest improvement in returns to retail depositors amid a cautious monetary easing cycle.
The adjustment follows the decision of the apex bank’s Monetary Policy Committee (MPC) at its September 2025 meeting to cut the MPR, citing improving inflation trends and the need to stimulate economic activity.
“The Committee’s decision to lower the monetary policy rate was predicated on the sustained disinflation recorded in the past five months, projections of declining inflation for the rest of 2025, and the need to support economic recovery effort,” the CBN stated in its communiqué.

Tier-1 banks lead with 8.25% rates
Most Tier-1 lenders including Access Bank, Zenith Bank, First Bank of Nigeria, and United Bank for Africa (UBA) maintained savings rates between 8.10% and 8.25%, keeping them among the highest in the market.
First Bank of Nigeria and Optimus Bank offered the top rate at 8.25%, while Stanbic IBTC Bank posted the lowest at 2.75%, far below the industry average.
Other mid-tier and emerging banks such as Globus Bank (8.18%), Parallex Bank (8.23%), and Nova Bank (8.00%) also remained competitive, reflecting increasing pressure to attract retail deposits amid tightening liquidity in the financial system.

Below is the latest published savings deposit rates (as of October 31, 2025):

Bank                                      Savings Rate (%)

Access Bank                                     8.10

Alpha Morgan Bank                         8.10

Citi Bank                                          8.10

Ecobank                                            5.95

FCMB                                               4.25

Premium Trust Bank                     8.10

Fidelity Bank                                     8.10

First Bank of Nigeria                         8.25

Globus Bank                                      8.18

Guaranty Trust Bank (GTBank)        8.10

Keystone Bank                                  8.10

Nova Bank                                         8.00

Optimus Bank                                    8.25

Parallex Bank                                     8.23

Polaris Bank                                       8.10

Providus Bank                                    8.10

Signature Bank                                   8.10

Stanbic IBTC Bank                            2.75

Standard Chartered Bank                   8.10

Sterling Bank                                     8.10

Suntrust Bank                                     8.10

UBA                                                    8.10

Union Bank                                        8.10

Unity Bank                                         8.10

Wema Bank                                       8.10

Zenith Bank                                       8.10

(Merchant Banks including Coronation MB, FBNQuest MB, FSDH MB, Greenwich MB, and Rand Merchant Bank did not publish savings rates as of the reporting date.)

Easing Policy, Tight Liquidity

Analysts say the slight uptick in savings rates may not translate into significant gains for depositors, given the still-high inflation and tight credit conditions. However, the central bank’s decision to reduce the MPR is seen as a signal of confidence in ongoing disinflation trends.
“The CBN appears to be balancing between easing rates to encourage lending and maintaining positive real returns for savers.
“The recent disinflation data gave the MPC enough room to make this downward adjustment,” said Chibuzor Anya, a Lagos-based financial analyst who spoke to The Trust News.
At 27.5%, the MPR remains among the highest in Africa, but the CBN’s stance indicates a gradual move toward supporting private-sector lending and consumption-led recovery, especially after multiple quarters of tight monetary policy aimed at curbing inflation.

Banking sector outlook

With savings rates inching higher, banks are expected to face higher funding costs, particularly as competition for retail deposits intensifies. Nonetheless, the CBN’s move is expected to encourage broader credit expansion in the medium term, aligning with government efforts to boost growth.
Economists note that as inflation moderates and liquidity improves, further adjustments to the policy rate could follow.
“The next few quarters will test how banks balance deposit mobilization with loan growth. The direction of the MPR will remain crucial in shaping margins and credit appetite,” said another analyst.

Conclusion

The new savings deposit rates underscore the CBN’s evolving policy stance toward a more accommodative framework aimed at stimulating growth while maintaining monetary stability. As the financial system adjusts to the 27.5% MPR, the spotlight remains on how banks manage liquidity, lending, and deposit pricing in the months ahead.