By Modupe Gbadeyanka
The Central Bank of Nigeria (CBN), in a circular dated Wednesday, April 5, 2017, released guidelines for the regulation of Non-Interest (Islamic) Microfinance Bank (NIMFBs) in the country.
The circular, signed by the apex bank’s Director in charge of Financial Policy and Regulation Department, Mr Kelvin Amugo, categorised the NIMFB into unit, state and national licence with minimum paid-up capital of N20 million, N100 million and N2 billion respectively.
He further stated that the minimum standard operating procedures, prudential ratios and other regulatory requirements that operators of NIMFBs are expected to comply with were specified in the guidelines.
Mr Amugo also explained that the framework was developed to provide a level playing field between the conventional and the non-interest micro-finance banks and to address issues underpinning the operation of non-interest financial institutions (NIFIs).
View the full guidelines below.