The Central Bank of Nigeria (CBN) on Thursday released guidelines for the regulation and supervision of Non-Interest (Islamic) Microfinance Bank (NIMFBs) in the country.
The guideline according to Kelvin Amugo, director, financial policy and regulation department, CBN, 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).
This is expected to enhance financial inclusion by bringing to the formal sector, individuals, communities, and corporations that are not captured by the conventional microfinance banks.
The minimum standard operating procedures, prudential ratios and other regulatory requirements that operators of NIMFBs are expected to comply with are specified in the guidelines.
The guidelines categorised the NIMFB into unit, state and national licence with minimum paid-up capital of N20 million, N100 million and |N2 billion respectively.