CBN gives MFBs more time to comply with new guidelines

May 09, 2013

The Central Bank of Nigeria (CBN) has extended the deadline for the implementation of the Revised Microfinance Policy Framework to December 31st 2013, an official has revealed.

The Central Bank of Nigeria (CBN) has extended the deadline for the implementation of the Revised Microfinance Policy Framework to December 31st 2013, an official has revealed.

CBN official Olufemi Fabamwo told This Day newspaper that the decision to extend the deadline was "to allow more time for capital raising and business combination options towards meeting the capital requirements for each category of Microfinance bank (MFB) and for rationalising the existing branches".

The revised guidelines have been designed to help resolve many issues faced by the sector, such as capital
requirements
and the uneven spread of MFBs in the country.

They stipulate that a Unit MFB is authorised to operate in one location and is required to have a minimum paid-up capital of N20 million (€96,200), while a State MFB is authorised to operate in one state and is required to have a minimum paid-up capital of N100 million.

A National MFB is authorised to operate in more than one state and is required to have a minimum paid-up capital of N2 billion.

National Association of Microfinance Bank's president Jethro Akun welcomed the decision of the central bank to extend the deadline.

"We are happy with the disposition of the CBN towards us. It is the microfinance banks that will promote the central bank's financial inclusion strategy and financial literacy in this country," he told This Day.ADNFCR-2976-ID-801582903-ADNFCR