The Central Bank of Nigeria, CBN has issued a revised guideline for regulation and supervision of the Development Finance Institutions, DFIs, setting N100billion as minimum capital for Wholesale DFIs, WDFIs.
Mr Godwin Emefiele answering questions during his screening by the Senate for Central Bank Governorship in Abuja on Wednesday
The CBN, in its website on Tuesday stated that the capital requirements for DFIs are as follow: WDFI minimum capital – N100,000,000,000.00, Minimum capital for Retail DFI-N5,000,000,000.00.
The guideline further stated that the prompters of DFI shall submit the following documents to the CBN before such a company would be considered for the grant of a final licence and thereafter, permitted to commence operations.
It stated that promoters should provide : Evidence of payment of a non-refundable licensing fee of N500,000.00 [five hundred thousand Naira only] for RDFI or N1,000,000.00 (one million Naira only) for WDFI, or any other amount as may be determined by the CBN; A copy of the shareholders’ register in which the equity interest of each shareholder is properly reflected [together with the original for sight);A copy of the share certificate issued to each shareholder ; Certified true copies of Form CAC 2 (Statement of Share Capital and Return on Allotment), Form CAC 3 (Notice of Situation/Change of Registered Address) and Form CAC 7 (Particulars of Directors and changes therein ).
The CBN stated that in a bid to accelerate the pace of development of the Nigerian economy and realization of the key role of some critical sectors in the process, the Federal Government of Nigeria has over the years established DFIs to provide financial interventions in the identified sectors, targeting Micro , Small and Medium size Enterprises MSMEs , to complement the efforts of banks and other financial institutions (OFIs) in that regard.
According to CBN, “However, due to limited access to long- term and low -interest funds, in addition to other factors, the DFIs have recorded limited successes. Consequently, the Federal Government in collaboration with development partners and international financial institutions (IFIs) decided to sponsor the establishment of a Wholesale DFI (WDFI) to bridge the gap and to increase the availability and access to finance, in particular for MSMEs.”
These guidelines are designed to be consistent with CBN’s existing regulations for all licensed financial institutions.
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