- Microfinance: CBN Extends Deadlines for Minimum Capital Compliance
The Central Bank of Nigeria has extended the deadlines for compliance with the minimum capital requirements for Microfinance Banks (MFBs) in the country.
The apex bank, in a circular dated March 7, 2019, had directed all MFBs to meet minimum capital requirements for operations.
However, the COVID-19 outbreak that eroded business profits and impacted economic activities has forced the apex bank to revised its circular referenced FPRD/DIR/GEN/07/024 to accommodate disruption in business activities in recent weeks.
In a circular referenced FPR/DIR/GEN/CIR/07/054 and obtained by Investors King, the apex bank said it has extended the deadlines for compliance with the revised minimum capital requirements for all categories of MFBs by one year as follows:
- MFBs operating in rural, unbanked and under banked areas (tier2) 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 2020;
- State MFBs shall increase their capital to N500 million by April 2021 and N1 billion by April 2022; and
- National MFBs are expected to meet minimum capital of N3.5 billion capital by April 2021 and N5 billion by April 2022.
