Business
CBN Gives 15 Microfinance Banks New Licences
No fewer than 15 microfinance banks commenced operations in the country after getting new licences from the Central Bank of Nigeria (CBN) between February 13, 2019 and December 2019, findings have revealed.
The CBN had earlier disclosed that the number of microfinance banks licensed in the country stood at 898 as of February 13, 2019.
In its newly released list on the recognised microfinance banks, the apex bank disclosed that the figure had risen to 913 as of the end of December, 2019.
The MFBs had, however, been making moves to meet the recapitalisation requirements of the CBN.
In a circular in March, 2019, the CBN had stated that the Tier 2-unit microfinance banks must have a minimum capital of N50m, while Tier 1 would maintain the N200m minimum capital introduced for unit microfinance banks in October, 2018.
It stated that Tier-1 unit microfinance banks must meet a N100m capital threshold by April, 2020 and N200m by April, 2021.
Tier-2 unit microfinance banks, it added, must meet a N35m capital threshold by April, 2020 and N50m by April, 2021.
The CBN stated that state microfinance banks must increase their capital to N500m by April, 2020 and N1bn by April, 2021.
The CBN recently issued the revised supervisory and regulatory guidelines for micro finance banks in Nigeria to support the development and sustainability of the sector.
The regulation said, “The need to reposition and strengthen the MFB towards improved performance had become apparent as revealed from the report of a recent review of the subsector.”
The CBN stated that an MFB would be allowed to engage in acceptance of various types of deposits including savings, time, target and demand deposits from individuals, groups and associations, provision of credit to its customers and provision of housing micro loans.
It stated that they could provide ancillary services such as capacity building on record keeping and small business management and safe custody and issuance of debentures to interested parties to raise funds from members of the public with the prior approval of the CBN.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.