The Central Bank of Nigeria has had to revise the deadline for compliance with the minimum capital requirements for all categories of Microfinance Banks by one year.
This was contained in a circular issued by the central Bank of Nigeria to Microfinance Banks on April the 29th 2020 and signed by Kevin Amugo, the Director, Financial Policy and Regulation Department.
In the circular, the Apex bank said, “The Central Bank of Nigeria in consideration of the impact of the coronavirus pandemic on economic activities has revised the deadlines for compliance with the minimum capital requirements for Microfinance Banks (MfBs) in Nigeria.”
The CBN has now extended the deadline as follows: MfBs operating in rural, unbanked and underbanked areas (Tier 2) should 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 2022.
“State MFBs shall increase its capital to N500 million by April 2021 and N1 billion by April 2022. National MFBs are expected to meet the minimum capital of N3.5 by April 2021 and N5 billion by April 2022.”
The CBN had in March 2019, reviewed the minimum capital requirement for microfinance banks, with a view to ensuring continued operations of these banks in rural, unbanked and underbanked areas of the economy.