The Central Bank of Nigeria has extended by one year the deadline for microfinance banks in the country to comply with the minimum capital requirement directive.
Kevin Amugo, director in the Financial Policy and Regulation Department at the apex bank stated in a circular addressed to all categories of microfinance banks in the country that the extension was due to consideration of the impact of the Covid-19 pandemic on economic activities.
The CBN set different amounts for 2021 and 2022 as required minimum capital for the microfinance banks in the country.
“MFBs (microfinance banks) 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.
“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 2022.
“National MFBs are expected to meet minimum capital of N3.5 billion capital by April 2021 and N5 billion by April 2022,” the CBN stated.
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