CBN to increase minimum capital requirement for MfBs

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By Providence Emmanuel

The Central Bank of Nigeria, CBN, is set to increase the minimum capital requirement for Microfinance Banks, MfBs with a view to enhancing their performance.

Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele

Confirming this development to Vanguard on condition of anonymity, Chief Executive officer of  a Unit MfB said that  the issue was raised at the last Committee of MfBs meeting in Lagos, noting that the CBN has not made up its mind on the benchmark.

The source also disclosed that operators have been duly informed on the development aimed at enhancing performance in the subsector.

Recall that a Unit license MfB requires N20 million minimum paid up capital to operate; State MfBs license requires N100 million minimum paid up capital to operate while a National MfB requires N2 billion as minimum paid up capital to operate.

The source noted that…



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