News Column

Finance Houses

July 14, 2014

The Central Bank of Nigeria (CBN) has announced a new minimum capital base of N100 million for the operation of Finance Companies in the country, up from the N20 million previously stipulated by the central bank.

However, the regulator has fixed a September 30th, 2015 deadline for compliance with the new capital base as well as other provisions in the revised guidelines for the finance houses sub-sector.

According to the latest revised guidelines for finance companies in Nigeria obtained yesterday, any company seeking a licence for a finance company business in Nigeria shall among other requirements, submit a detailed business plan or feasibility study as well as a five-year financial projection for the operation of the company, indicating its expected growth and profitability.

It also stated that finance companies would be permitted to participate in accessing and disbursing funds to small and medium scale enterprises via relevant vehicles/ intervention funds set up by the central bank, government or other relevant bodies/ agencies.

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Source: AllAfrica

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