Central Bank of Nigeria has extended the deadline for  microfinance banks (MFBs) in the country to be recapitalised.

Director, Other Financial Institutions Supervision Department (OFSID) CBN. Mr. Olufemi Fabamwo disclosed this in a circular posted on its website.

Fabamwo pointed out that the decision was to allow more time for capital raising and business combination options towards meeting the capital requirements for each category of MFB and for rationalizing the existing branches/cash centres, among others, where necessary.

According to him, “all directors and shareholders of MFBs are therefore strongly advised to ensure compliance on or before the new deadline of 31st December, 2013.”

However, it would be recalled that the CBN in a previous circular stipulated that all MFBS that have elected to remain Unit MFBs, as indicated in the compliance plans earlier submitted to the CBN, are required to close any existing branches/cash centres, etc, subject to prior approval of the CBN in writing and adequate notification to existing customers, who should advised to migrate their accounts to the MFB’s Head office, while dissenting customers should be sewed.