The Central Bank of Nigeria on March 3, 2020 issued for comments a draft exposure of its Guidelines for the Regulation and Supervision of Microfinance Banks in Nigeria (www.cbn.gov.ng) (the draft “MFB Guidelines”). The draft MFB Guidelines seeks, among others, to
(i) expand the category of activities which Microfinance Banks (“MFBs”) can carry on (MFBs, for example, will be allowed to act as mobile banking agents and issue domestic commercial paper),
(ii) establish four (4) categories of MFBs (Tier 1 unit, Tier 2 unit, State MFB and National MFB) and
(iii) prescribes minimum capital requirements for each category of MFB (Tier 1: N200mm, Tier 2: N50mm, State MFB: N1bn and National MFB: N5bn).