Nigeria - Apply for a Microfinance Bank License

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Procedure

Apply In-Person:

1. To apply for a Microfinance Bank license in person, the applicant has to make an application to the Governor or the Director of the Financial Policy and Regulation Department (FPRD) in the Central Bank of Nigeria.
2. The contact link of the Central Bank of Nigeria can be found below: contact link
3. Visit the office of CBN with an application letter for the grant of a licence to carry on the business of a Microfinance Bank in Nigeria.
4. The application should be addressed to the Director of Financial Policy and Regulation Department, Central Bank of Nigeria.
5. Also, make sure that you have all the documents listed in the “Required documents” section of this page.
6. Attach all the documents with the application letter and submit it to the Director of Financial Policy and Regulation Department.
7. After assessing the application and attached documents, CBN will initially issue an Approval-In-Principle (AIP).
8. The AIP is issued in line with the incorporation process of the bank with the Corporate Affairs Commission.
9. Once the process of Incorporation is over, the applicant will be issued with a final license with a prior notification through phone or email.
10. If the Regulation Department is not satisfied with the request of the applicant, the grant will be cancelled and the promoter will be informed in writing along with the refund of capital deposit.
    

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Required Documents

• Formal application letter
• Proof of Paid-up Minimum share capital
• Capital Importation Certificate (foreign capital)
• Report of feasibility in detail (copy)
• Memorandum and Articles of Association (copy)
• Letter of Intent from subscribers
• Proposed Board of Directors’ Particulars
• Proof of payment
• Any supporting document (as required)
  

For more clarifications, please refer section 4.2.2 in the following document: regulations link

Office Locations & Contacts

Central Bank of Nigeria - Head Office,
Plot 33, Abubakar Tafawa Balewa Way
Central Business District,
Cadastral Zone,
Abuja, Federal Capital Territory, Nigeria
P.M.B. 0187, Garki Abuja.
Nigeria
Phone: +234 700 225 5226
Toll free line: +234 800 225 5226
Email: [email protected]
Website: Link

Eligibility

• Individuals, groups of individuals, community development associations, private corporate entities or foreign investors are eligible to establish Microfinance Bank.
• The applicant bank must have a minimum paid-up capital with respect to the category.
• Unit MFB is required to have a minimum paid-up capital of N20 million.
• State MFB is required to have a minimum paid-up capital of N100 million.
• National MFB is required to have a minimum paid-up capital of N2 billion.
  

Fees

Please refer section 4.2.7 in the following document for fees details: regulations

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

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Sample Documents

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Processing Time

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Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.gIn the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• After the grant of license, a physical inspection of the bank premises will be conducted by the CBN. This will be done before the operation of the bank.
• If the CBN is satisfied with the set up of the bank during the inspection, it will inform the applicant in writing regarding the commencement time of the business and the bank should inform the CBN, the date on which it is about to commence the banking operations.
  

Required Information

• Business name
• Registration number
• Incorporation particulars
• Full Address of the premises
• Share capital
• Identity document numbers of the directors
• Identity document numbers of the shareholders
• Phone number
• Email address
• Banking details
  

Need for the Document

To establish Microfinance Bank in Nigeria, the respective promoter organization must possess a Microfinance License obtained from the Central Bank of Nigeria.

Information which might help

• Microfinance Bank (MFB) is any company licensed by the Central Bank of Nigeria CBN to carry on the business of providing financial services such as savings and deposits, loans, domestic funds transfer and non-financial services to microfinance clients.
• Based on the recent reform, there are three (3) categories available to promoters based on geographical spread: Unit MFB, State MFB and National MFB.
• Microfinance loans are small loans granted to micro enterprises by financial intermediaries on the basis of the borrower’s cash flow.
• Please refer the following link for more information: – FAQs
  

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

• Regulations link
  
• Regulatory guidelines link
  

Others

More information which might help people.