The recent revocation of licences for 46 microfinance banks (MFBs) by the Central Bank of Nigeria highlights the growing strain on traditional community-based lenders amidst the rapid expansion of the fintech sector. While fintech firms have significantly boosted financial inclusion, their digital-first models often neglect the unbanked rural populations that rely on the physical presence and character-based credit systems of traditional MFBs. Industry experts warn that without policy reforms, such as tiered licensing and targeted concessional funding, these essential rural institutions face extinction, potentially stalling efforts to reach the remaining unbanked population. Proposed solutions include distinguishing between commercial-scale fintechs and development-focused MFBs to ensure both sectors can sustainably operate within the national financial architecture.