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CBN says 874 microfinance banks have operational licences




The Central Bank of Nigeria (CBN) reported that 874 microfinance banks have licences to operate in the country.

The CBN, in its report titled ‘List of CBN licensed microfinance banks as at December 7, 2020, listed the names of the MfBs. recently reported that the central bank had revoked the operating licences of 42 microfinance banks in the country.

The apex bank, being concerned over the COVID-19 pandemic on economic activities in 2020, revised the deadline for compliance with the minimum capital requirements for microfinance banks in Nigeria.

This was contained in a statement with reference number FPR/DlR/GEN/ClR/07/054 entitled ‘Re: Review of minimum capital requirements for microfinance banks in Nigeria’.

The statement read in part: “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 N1bn by April 2022. And national MFBs are expected to meet minimum capital of N3.5bn capital by April 2021 and N5bn by April 2022.”



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