Regulatory Alerts2013-01-03 | OFI/DIR/CIR/GEN/03/13Revised Regulatory and Supervisory Guidelines For Microfinance Banks (MFBs) in Nigeria
The CBN's revised regulatory and supervisory guidelines for Microfinance Banks (MFBs) in Nigeria stipulate several parameters that MFBs should adhere to. Key points include: 1. Transparent and responsible pricing, avoiding over-indebtedness, and disclosure of required information to Credit Reference Bureaus. 2. A clear financial strategy and diversified funding base, with prior CBN approval for office accommodation and branch expansion. 3. Streamlined management structure, minimal middle/top management levels, low-cost staff training, and adherence to an approved strategic plan and annual budgeting. 4. Regular review and monitoring of loans, including periodic field visits to clients, and the use of a Microfinance Certification Programme for top management and highly recommended for other staff. 5. The promotion of group solidarity models and wide outreach at low operational costs.