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CBN Extends Minimum Capital Requirement Deadlines For Microfinance Banks

A photograph exhibiting the CBN headquarters in Abuja. Photograph: Channels TV/ Sodiq Adelakun.

 

 

The Central Financial institution of Nigeria (CBN) has prolonged the deadlines for compliance with the revised minimal capital necessities by Microfinance Banks (MFBs) within the nation.

That is contained in a round to all microfinance banks dated April 29 and signed by the Director of CBN Monetary Coverage and Regulation Division, Kevin Amugo.

Amugo famous that the apex financial institution had issued a set of deadlines in an earlier round dated March 7, 2019.

He defined that the assessment was a results of the impact of the coronavirus (COVID-19) pandemic on financial actions within the nation.

In keeping with the CBN official, the brand new directive impacts microfinance banks working in rural, unbanked and under-banked areas, city and high-density banked areas, in addition to the state and nationwide MFBs.

Learn the round issued by the nation’s monetary regulator under:

RE: REVIEW OF MINIMUM CAPITAL REQUIREMENTS FOR MICROFINANCE BANKS IN NIGERIA

The Central Financial institution of Nigeria in consideration of the coronavirus (COVID-19) pandemic on financial actions has revised the deadlines for compliance with the minimal capital necessities for Microfinance Banks (MFBs) in Nigeria communicated vide its round dated March 7, 2019 referenced FPRD/DIR/GEN/CIR/07/024.

Consequently, the CBN has prolonged the deadlines for the compliance with the revised minimal capital necessities for all classes of MFBs by one 12 months as follows:

MFBs working in rural, unbanked and under-banked areas (Tier 2) shall meet the N35 million capital threshold by April 2021 and N50 million by April 2022;MFBs operation in city and high-density banked areas (Tier 1) are anticipated to fulfill the N100 million capital threshold by April 2021 and N200 million by April 2022;State MFBs shall enhance their capital to N500 million capital threshold by April 2021 and N1 billion by April 2022; andNational MFBs are anticipated to fulfill minimal capital of N3.5 billion capital by April 2021 and N5 billion by April 2022.

Please be guided accordingly.

Kevin N. Amugo

Director, Monetary Coverage and Regulation Division

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