GUIDELINES ON THE ESTABLISHMENT OF MICROFINANCE BANKS IN NIGERIA: PART B

We wish to notify you of an error in our last article regarding the Tier 2 microfinance bank: the required minimum share capital is N200,000,000 (two hundred million), not N20,000,000 (twenty million) as previously stated. We sincerely apologize for any confusion this may have caused.

Continuing with our guide, here is the second part of the step-by-step process for applying through the CBN Licensing, Approval, and Other Requests Portal (CBN LARP): https://larp.cbn.gov.ng/assets/doc/CBN-LARP-USER-MANUAL-(PUBLIC).pdf

1. Login and Password Reset: The applicant logs in with the credentials sent to his mail and will be prompted to change his default password.
2. Company Information: The applicant will see the share capital in Naira depending on the application type chosen. In the example below, the applicant is applying for a Tier 2-unit Micro-Finance Bank license whose share capital is N200,000,000.
3. Document Upload: After the details have been filled, the applicant will be requested to upload supporting documents as requested below, click on ‘Save and Proceed’.
4. Shareholders Details: After a successful document upload, the applicant is required to fill in the shareholders details: Click on ‘Add new shareholder’ to add a shareholder.

• Note: Please note that the total shareholder amount invested must be equal to the share capital depending on the application type.
• Individual Shareholder: Ensure the name and BVN number are correct, this will be validated by the system. Enter the amount invested in the institution in Naira and indicate if the funds are local or foreign.
• If the funds are local, the applicant is expected to give a breakdown of the funds.
• The applicant is not required to complete the whole Table; only complete the rows evidence is available for.
• Ensure that the breakdown of the amount invested must sum up to the amount declared to have invested in the institution otherwise that shareholder cannot be added successfully.
• If the funds are foreign, the applicant will be required to upload a copy of the Certificate of Capital Importation.
• If the Shareholder is also a director, select “Yes” where you have, “Is this Shareholder also a Director” otherwise click on “Add Shareholder.”
• Select the Director Type and add all the information required and attach all the documents for the shareholder and click on “Add Shareholder”
• Enter the Directors “Education Details”, “Work Experience”, “Professional Membership”
• More information can be added under each category by clicking on the “Add” button.
• Select the bank and provide the Directors Bank Details and click on “Add Shareholder”.
• Corporate Shareholder: Ensure the company name and TIN number are correct, this will be validated by the system. Enter the amount invested in the institution in Naira and let us know if the funds are local or foreign.
• If the funds are local, the applicant is expected to give a breakdown of how the funds were secured, how much was secured from each source, and attach evidence.
• The applicant is not required to complete the whole Table; only complete the rows evidence is available for.
• Ensure that the breakdown of the amount invested must sum up to the amount declared to have invested in the institution otherwise that shareholder cannot be added successfully.
• If the funds are foreign, the applicant will be required to upload a copy of the Certificate of Capital Importation.
• Attach ALL the documents (They are all compulsory).
• Click on “Validate TIN” and wait for the TIN to be validated.
• Click on “Add Shareholder”.

1. Directors:

• Select the type of Director.
• Ensure the name and BVN number are correct, this will be validated by the system.
• Ensure the person(s) is older than 18 years.

Note:

• Applicants can only add one Managing Director.
• The managing director cannot be a managing director in another financial institution.
• Applicants must add an independent director for the institution.
• Applicants must meet the guidelines requirements for the minimum and maximum number of directors.
• Attach ALL the documents (They are all compulsory).
• Enter the Directors “Education Details”, “Work Experience”, “Professional Membership”.
• Applicants can add more information under each category by clicking on the “Add” button.
• Select the “bank” and provide the Directors Bank Details.
• Validate the BVN by clicking on “Validate BVN” and click on “Add Director” to add the Director.

1. Application Summary: All the information provided will be available for the applicant to review and confirm. The information can still be edited to change the information initially provided. Only when all the requirements have been met before the submission of the application can be successful.
2. Finalize and Submit: Once you click on “Finalize and submit for AIP”, you will receive an email confirmation.