Nigeria’s apex bank has put plans to implement new regulations for Microfinance banks meant to take effect from 1st April, 2020 throughout the country on hold.
The renewed interest in Microfinance banks by Nigerian fintechs gave rise to the need for the Central bank to review the regulations. Although, talks about these regulations started making rounds in 2018, the review came to fruition only in 2020.
The renewed interest by Fintech companies has increased the number of microfinance banks in Nigeria to 900. Nigeria currently has no digital banking licences, that is why Nigerian fintechs have taken to acquiring Microfinance bank licenses in order to provide digital banking services.
One of the biggest changes in the regulation trialed by controversies is an increase in the licence fees of unit licences from ₦20 million ($51,696) to a striking ₦200 million ($516,964).
The implementation of the changes have now been moved to April 1, 2021.