The Central Bank of Nigeria (CBN), Nigeria’s central banking authority, reportedly has ordered all banks in Nigeria “to allow new customers to open account with zero amount to attract more people into the banking system.” Prior to CBN’s announcement, most Nigerian banks required customers to meet a minimum account balance when opening new accounts. CBN also stated that banks are not allowed to place a limit on interest rate payments for savings accounts. Banks are also required to use declining balance interest calculations instead of flat rates, which result in customers paying interest on the original loan amount even after much of the balance has been repaid [1].
As of November 2011, CBN reports total assets of NGN 9.77 trillion (USD 61.9 billion).
By Brendan Millan, Research Associate
About the Central Bank of Nigeria (CBN): The Central Bank of Nigeria (CBN) was established in 1958 as Nigeria’s central banking authority. As defined by the Act of Parliament that created CBN, its statutory mandates are as follows: “to issue legal tender currency; to maintain external reserves; to safeguard the international value of the legal tender currency; to promote monetary stability and a sound financial system in Nigeria; and to act as banker and financial adviser to the Federal Government.” As of November 2011, CBN reports total assets of NGN 9.77 trillion (USD 61.9 billion).
Sources and Resources:
[1] Vanguard: “New Customers Should Open Account with Zero Amount – CNB” by Ahmed Ibrahim. http://www.vanguardngr.com/2012/04/new-customers-should-open-account-with-zero-amount-cbn/
MicroCapital.org Article, April 1, 2012, “MICROCAPITAL BRIEF: Central Bank of Nigeria to Endorse Microfinance Development Fund, More Automated Teller Machines (ATMs), Regulation Related to Electronic Statements, Dispute Resolution”, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-to-endorse-microfinance-development-fund-more-automated-teller-machines-atms-regulation-related-to-electronic-statements-dispute-resolution/
MicroCapital.org Article, March 8, 2012, “MICROFINANCE PAPER WRAP-UP: “The Challenge of Understanding Pricing of Micro-loans,” by Chuck Waterfield, Published by MicroFinance Transparency”, https://www.microcapital.org/microfinance-paper-wrap-up-the-challenge-of-understanding-pricing-of-micro-loans-by-chuck-waterfield-published-by-microfinance-transparency-2/
MicroCapital.org Article, March 7, 2012, “MICROCAPITAL BRIEF: Nigerian Microfinance Bank Transactions With Traditional Banks Excluded from Cash Limit Policy”, https://www.microcapital.org/microcapital-brief-nigerian-microfinance-bank-transactions-with-traditional-banks-excluded-from-cash-limit-policy/
MicroCapital.org Article, February 6, 2012, “MICROCAPITAL BRIEF: Microfinance Banks Exempt from Nigeria’s Cash-Lite Cashless Banking System and Tax”, https://www.microcapital.org/microcapital-brief-microfinance-banks-exempt-from-nigerias-cash-lite-cashless-banking-system-and-tax/
MicroCapital.org Article, January 24, 2012, “MICROCAPITAL BRIEF: Citing High Repayment Rates, FINCA Zambiato Reduce Rates, Charge Interest Based on Declining Balance”, https://www.microcapital.org/microcapital-brief-citing-high-repayment-rates-finca-zambia-to-reduce-rates-charge-interest-based-on-declining-balance/
MicroCapital.org Article, October 4, 2011, “MICROCAPITAL BRIEF: Central Bank of Nigeria Approves New Capital Base Requirements for Microfinance Banks (MFBs), MFBs Await Capital Verification Results”, https://www.microcapital.org/microcapital-brief-central-bank-of-nigeria-approves-new-capital-base-requirements-for-microfinance-banks-mfbs-mfbs-await-capital-verification-results/
MicroCapital Universe Profile: Central Bank of Nigeria, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Central+Bank+of+Nigeria+%28CBN%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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