CBN Extends Minimum Capital Requirement Deadlines For MFBs
Central Bank of Nigeria, CBN, has extended the deadlines for compliance with the revised minimum capital requirements for Microfinance Banks.
CBN has considered the impact of the Covid-19 pandemic on general economic activities to extend the deadlines for compliance with the minimum capital requirements for Microfinance Banks (MFBs) in Nigeria.
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The circular reads;
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 N100 million capital threshold by April 2021 and N200million by April 2022;
3) State MFBs shall increase their capital to N500 million by April 2021 and N1billion by April 2022; and
4) National MFBs are expected to meet minimum capital of N3.5 billion capital by April 2021 and N65 billion by April 2022.