Nigeria: Central Bank extends commencement dates for minimum capital requirements

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In light of the COVID-19 pandemic, the Central Bank of Nigeria has extended by one year, commencement dates for revised minimum capital requirements for microfinance banks (MFBs) in the country.

According to the prudential regulator, the revised capital requirements for the different categories of MFBs in the country will come into effect as follows:
i) MFBs operating in rural, unbanked and under-banked areas are expected to meet ₦35 million capital threshold by April 2021 and ₦50 million by April 2022.
ii) MFBs operating in urban and high-density banked areas are to meet ₦100 million capital threshold by April 2021 and ₦200 million by April 2022.

Other applicable dates, as announced by the regulator, are as follows:
i) State MFBs are to meet the applicable ₦500 million capital threshold by April 2021 and ₦1 billion by April 2022.
ii) National MFBs are expected to meet minimum capital requirements of ₦3.5 billion capital threshold by April 2021 and ₦5 billion by April 2022.

Additional details are available here.

Photo Credit: Pixabay

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