Regulatory Alerts2020-04-30 | FPR/DIR/GEN/CIR/07/054Review of Minimum Capital Requirements for Microfinance Banks in Nigeria
The Central Bank of Nigeria has extended the deadline for Microfinance Banks to meet the minimum capital requirements due to the impact of the COVID-19 pandemic. The new deadlines are staggered based on the category of the MFB, with rural and state MFBs having until April 2021 to meet the first threshold and national MFBs needing to meet the $3.5 billion capital requirement by the same date.
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09 - 46237401 CENTRAL BA Financial Policy and Regulation Depar Central Business District P.M.B. 0187 Garki, Abuja.
E-mail:fprd@cbn.gov.ng April 29, 2020 REF: FPR/DIR/GEN/CIR/07/054 CIRCULAR TO ALL MICROFINANCE BANKS RE: REVIEW OF MINIMUM CAPITAL REQUIREMENTS FOR MICROFINANCE BANKS IN NIGERIA The Central Bank of Nigeria in consideration of the impact of the Corona Virus (COVID- 19) pandemic on economic activities has revised the deadlines for compliance with the minimum capital requirements for Microfinance Banks (MFBs) in Nigeria communicated vide its circular dated March 7, 2019 referenced FPRD/DIR/GEN/CIR/07/024. Consequently, the CBN has extended the deadlines for compliance with the revised minimum capital requirements for all categories of MFBs by one year as follows: 1) MFBs operating 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; 2) MFBs operating in urban and high density banked areas (Tier 1) are expected to meet the $100 million capital threshold by April 2021 and N200 million by April 2022; 3) State MFBs shall increase their capital to N500 million by April 2021 and N1 billion by April 2022; and 4) National MFBs are expected to meet minimum capital of N3.5 billion capital by April 2021 and N5 billion by April 2022.
Please be guided accordingly.
KEVIN N. AMUGO DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT