CBN Approves Africa’s First MfB For Farmers

CBN Issues Guideline for Appointment of Compliance Officers’ By Banks

The Central Bank of Nigeria, CBN, has given approval to Africa’s first farmers microfinance bank to operate in the Unit Category in Nigeria, Governor, Central Bank of Nigeria (CBN), Mr Godwin Emefiele, has announced.

The approved MfB is called Joint Farmers Microfinance Bank Limited as contained in a CBN letter titled: “Final Approval To Operate As Joint Farmers Microfinance Bank Limited” signed by Director, Financial Policy and Regulation Department, Mr. S. Mohammed.

The CBN, in the statement dated May 21, 2018 requested the management of the new bank to give information on when it would be commencing operation as an MfB to enable a proper update of its record. Mohammed implored the bank to ensure that it adheres strictly to all the CBN’s rules and regulations guiding operations of MfBs as well as the provisions of the undertaking it signed.

The CBN said that the firm would be required to comply with the revised provisions whenever it becomes operational as the Revised Regulatory and Supervisory Guideline for MfBs in Nigeria (2012) is currently under review.

According to the statement: “We refer to your application dated February 23, 2018, on the above subject and write to convey the CBN approval for your company to operate a MfB in the name of Joint Farmers Microfinance Bank Limited. Please ensure that you adhere strictly to all the bank’s rules and regulations guiding operations of MfBs as well as the provisions of the undertaken signed by you. You should note that any adverse report on any of the board members and management staff will invalidate his/her appointment and would impact negatively on the bank.

“Also, note that any claim found to be false on the basis of which this approval is given will render it invalid. Furthermore, may we advise you that the revised regulatory and supervisory guideline for MfBs (2012) is currently under review and you shall be required to comply with revised provisions whenever it becomes operational.

“You are required to inform the CBN of the date of commencement of operations of the MfB to enable us update our records,” the CBN statement concluded.

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