Regulatory Alerts2006-09-20 | TED-AD-132A-2006Waiver of the Application, Licensing and Change of Name Fees for Existing Community Banks Converting to Microfinance Banks
The Central Bank of Nigeria (CBN) has waived application, licensing, and name change fees for existing Community Banks converting to Microfinance Banks by December 31, 2007. This waiver aims to encourage the conversion process, reducing documentation costs and other requirements associated with the transition. The decision will be revoked after the specified deadline unless otherwise extended.
CENTRAL BANK OF NIGERIA Tinubu Square, CBN website: www.cenbank.org P.M.B. 12194, Lagos.
Our Ref: OFID/DO/CIR./Vol.1/484 11th September, 2006 Tel: 01-2662483 Fax: 01-2668667 CIRCULAR TO ALL CHAIRMEN, DIRECTORS AND MANAGERS OF ALL COMMUNITY BANKS WAIVER OF THE APPLICATION, LICENSING AND CHANGE OF NAME FEES FOR EXISTING COMMUNITY BANKS CONVERTING TO MICROFINANCE BANKS In order to encourage existing Community Banks (CBs) to expeditiously convert to Microfinance Banks (MFBs), the Management of the Central Bank of Nigeria (CBN) has approved the waiver of application fees of N50,000 and N100,000, as well as licensing fees of N100,000 and N250,000 for all CBs converting to Unit and State Microfinance Banks, respectively. Also approved is a waiver of the change of name fee of N5,000 for any converting CB.
For the avoidance of doubt, all CBs converting to MFBs are no longer required to pay these fees. This gesture is to minimize the cost of documentation and other requirements for conversion by CBs to MFBs on or before 31st December, 2007. All CBs are to note that this concession would automatically lapse by 31st December, 2007.
S. A. Oni Director, Other Financial Institutions Department.