In consideration of the impact of the COVID-19 pandemic on economic activities in the country, the Central Bank of Nigeria (CBN) has revised the deadline for compliance with the minimum capital requirement for microfinance banks.
Owing to the development, the CBN extended the deadline for compliance with the revised minimum capital requirements for all categories of microfinance banks by one year.
The central bank stated this in a circular dated April 29, signed by its Director, Financial Policy and Regulation Department, Kevin Amugo, a copy of which was posted on its website.
It explained that for microfinance banks operating in rural, unbanked and underbanked areas (tier 2), they are now expected to meet the N35 million capital threshold by April 2021 and N50 million by April 2022. Also, for microfinance banks operating in urban and high density banked areas (tier 1), with the new arrangement, they are expected to meet the N100 million capital threshold by April 2021 and N200 million by April 2022, while state microfinance banks shall increase their capital to N500 million by April 2021 and N1 billion by April 2022.
Similarly, National microfinance banks are expected to meet minimum capital of N3.5 billion by April 2021 and N5 billion by April 2022.