The Central Bank of Nigeria (CBN) has extended the deadlines issued to Microfinance banks (MFB) to comply with its revised minimum capital requirements.
This was contained in a circular issued to all microfinance banks on April 29, 2020, and signed by the CBN’s Director, Financial Policy and Regulation Department, Kevin Amugo.
In the circular, the apex bank said:
“The Central Bank of Nigeria in consideration of the impact of the coronavirus (COVID-19) pandemic on economic activities has revised the deadlines for compliance with the minimum capital requirements for Microfinance Banks (MFBS) in Nigeria.”
Consequently, the CBN has extended the deadline as follows:
• MFBs operating in rural, unbanked and underbanked areas (Tier 2) shall meet the N35 million capital threshold by April 2021 and N50 million by April 2022.
• MFBs operating in urban and high density banked areas (Tier 1) are expected to meet the N100 million capital threshold by April 2021 and N200 million by April 2022.
• State MFBs shall increase their capital to N500 million by April 2021 and N1 billion by April 2022.
• National MFBs are expected to meet the minimum capital of N3.5 by April 2021 and N5 billion by April 2022.