It reads: “The 2012 Guidelines have been reviewed to strengthen and complement other on-going reform in the MFB subsector.”
Under the new capital base structure, the CBN categorised MFBs into four, as against the three – Unit, State and National contained in the 2012 Guideline.
But with the new capital base which takes effect next month, MFBs would be categorised into Tier-1 Unit, Tier-2 Unit, State and National.
Also, the capital base of state MFBs had been raised from N100 million to N1 billion by 2021 and they are expected to have N500 million capital base by April 1, 2020 while the National MFBs are expected to have N3.5 billion by next month and shore it up to N5 billion by April 2021 from a previous requirement of N2 billion.
The draft guideline stipulates that Tier 1 Unit MFBs, “shall operate in the banked and high-density areas, and is allowed to open not more than four branches outside the head office within five contiguous local governments areas, subject to the approval of the CBN.”
“State Microfinance Bank is authorized to operate in one State or the Federal Capital Territory (FCT). It is allowed to open branches within the same State or the FCT, subject to prior written approval of the CBN for each new branch or cash centre.”


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