Central Bank Of Nigeria To The Managing Directors/Ceos Of Microfinance Banks

Non-Rendition Of Monthly Returns And Other Matters Rendition Of Monthly Returns And Other Matters

It has been observed that many microfinance banks (MFBs), either with final licence or provisional approval, failed to submit monthly returns to the Central Bank of Nigeria (CBN), in contravention of Section 58(2)(b) of Banks and Other Financial Institutions Act (BOFIA), 1991 (as amended) and section 6.4 of the Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

This, therefore, serves as the final notice to all MFBs (with final licence or provisional approval) that, failure to either submit monthly returns to the CBN and NDIC, or late-submission (i.e. later than 14 days after the end of the relevant month) is absolutely unacceptable to the regulatory bodies.

For the avoidance of doubt, non-rendition of returns, late or false/inaccurate returns or other false/inaccurate information to the CBN shall attract full sanctions, including the revocation of the operating licence, as prescribed in section 8.2 of the Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

In addition, we hereby reiterate that all MFBs are required to ensure that their official name as approved by the Central Bank of Nigeria (CBN) and registered at the Corporate Affairs Commission (CAC) is written on their sign-boards, letter-headed paper, all banking instruments, branded documents and signages in the same font-style, font-size and colour. Specifically, the word "Microfinance" should be in the same font-style, font-size and colour as the word "Bank" and the rest of the approved name. All sign-boards, letter-headed papers, banking instruments, branded documents and signages which do not conform to this specification should be replaced immediately.

Furthermore, a copy of the CBN licence should be glazed and displayed by all MFBs in a conspicous location within the banking hall at the Head Office and all approved branches.

Any microfinance bank that fails to comply with these directives shall be appropriately sanctioned in accordance with Section 12(e) of the Banks and Other Financial Institutions Act (BOFIA), 1991 (as amended) and section 20.3 (h) of the Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

S.A. Oni

Director, Other Financial Institutions Dept.