Central Bank Nigeria (CBN) has endorsed a broadening of mergers and acquisitions among existing microfinance institutions (MFI’s) or ‘community banks’ so that they can comply with minimum capital requirements which are part of forthcoming regulation. The regulation, which requires all such organisations to register as microfinance banks by December 2007 (see previous article on microcapital.org), requires a minimum capital base of 20mm Nigerian naira (USD 156,500) for ‘state community banks’ and NGN 1bn (USD 7,824,000) for ‘federal community banks.’ After a meeting between CBN and the National Association of Community Banks of Nigeria (NACOB) Abdulgadir Bauchi, president of NACOB, said “community banks can now go into mergers and acquisitions so as to meet the deadline given by the apex bank to transform to microfinance bank[s].”
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