The Central Bank of Nigeria in consideration of the impact of the COVID-19 pandemic on economic activities has revised the deadline for compliance with the minimum capital requirements for microfinance banks in Nigeria.
The banking regulator communicated this in a circular with reference number FPR/DlR/GEN/ClR/07/054 entitled ‘Re: Review of minimum capital requirements for microfinance banks in Nigeria’.
Part of the circular read, “The Central Bank of Nigeria has extended the deadlines for compliance with the revised minimum capital requirements for all categories of the MFBs by one year as follows:
“The MFBs operating in rural, unbanked and under-banked areas (Tier 2) shall meet the N35m capital threshold by April 2021 and N50m by April 2022.
“The MFBs operating in urban and high density banked areas (Tier 1) are expected to meet the NI00m capital threshold by April 2021 and N200m by April 2022.
“State MFBs shall increase their capital to N500m by April 2021 and NIbn by April 2022.
“And national MFBs are expected to meet minimum capital of N3.5bn capital by April 2021 and N5bn by April 2022.”
Before the apex bank commenced the recapitalisation of the microfinance institutions in 2018, the minimum capital base for national microfinance banks was N2bn; state microfinance banks had N100m; while the unit microfinance banks had a minimum capital requirement of N20m.