CBN Releases Rules Guiding Operations of Islamic Banks in Nigeria

The Central Bank of Nigeria (CBN) has released a draft of guidelines for regulation and supervision of Non-Interest (Islamic) Microfinance Banks (NIMFBs) in Nigeria for inputs/comments.

In the document, CBN placed the NIMFBs into three categories- unit, state and national.

The apex bank postulated that the national NIMFB shall have a minimum paid-up capital of N2 billion, and be allowed to open branches and operate in all states of the federation, FCT included. This is subject to the availability of free funds and the prior approval of the CBN for each new branch or cash centre.

A State NIMFB is authorized to operate in one State or the Federal Capital Territory (FCT). It shall be required to have a minimum paid-up capital of N100 million (one hundred million Naira) and is allowed to open branches within the same State or the FCT, subject to the availability of free funds and the prior approval of the CBN for each new branch or cash centre.

A unit NIMFB is however authorised to operate in one location and shall have a minimum paid-up capital of N20 million. It will be allowed to have only one branch outside the head office within the same local government area, subject to availability of free funds of at least N20 million and compliance with the prescribed minimum prudential requirements.