It has been established that Microfinance banks will be unable to meet the necessary requirements for the recapitalisation of the Central Bank of Nigeria.
This is largely as a result of the huge blow the coronavirus pandemic has dealt on country’s economy. According to a statement made by Yusuf Gyallesu, National president of the National Association of Microfinance Banks (NAMB).
While pleading with the CBN to reconsider its minimum capital requirement for the banks, Mr. Gyallesu also called for an extension of the said deadline.
He said that the microfinance banks had difficulties raising the capital set by the CBN.
Following a review done in March 2019, the minimum share capital for microfinance banks, as at April 2021, ranged from N35 million to N3.5 billion, depending on the category.
Mr. Gyallesu was quoted by BusinessDay. as saying. “We are advocating through different sources to see how the CBN can shift ground by reducing the capital requirement amount or extending the tenure of the deadline,”
“So, within this COVID-19 period, where can one go to raise 1, 000 percent of the reviewed capital” he said again.
The Central bank had earlier extended the deadline issued to the banks to meet up with its revised minimum capital requirements, but the MFBs have been unable to comply.