Sycamore has confirmed that the Central Bank of Nigeria’s decision to revoke the operating licence of Sycamore Microfinance Bank relates to regulatory issues inherited from the tier-2 microfinance bank it acquired during its expansion into regulated banking, rather than its current fintech operations.
The clarification followed the publication of the CBN’s list of 46 microfinance banks whose licences were withdrawn. Sycamore said the affected banking licence belonged to an acquired Kano-based institution and that the regulatory action stemmed from historical compliance matters that existed before the acquisition was completed.
The development raises fresh questions about the company’s planned transition beyond digital lending into broader banking services, Brandspur Banking News Desk reports. Earlier this year, Sycamore disclosed plans to significantly expand its deposit base in 2026 as part of its long-term growth strategy, a goal that may now face delays while regulatory issues surrounding the acquired entity are resolved.
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Industry observers say the development highlights the importance of thorough regulatory due diligence during mergers and acquisitions within Nigeria’s financial services sector. Compliance experts noted that while acquisitions can accelerate expansion, they may also transfer unresolved regulatory obligations to the new owners if not fully addressed.
The CBN’s latest enforcement action forms part of its broader efforts to strengthen oversight of licensed financial institutions and ensure operators continue to meet prudential, governance and statutory requirements. Although the revocation affects the acquired microfinance banking licence, Sycamore has maintained that its existing fintech business continues to operate independently of the legacy compliance issues linked to the acquired institution.
