CBN Sets N10bn Minimum Requirement For Credit Guarantee Companies

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The Central Bank of Nigeria (CBN) has announced a minimum share capital of N10 billion, a non-refundable application fee of N100,000 and a non-refundable

The Credit Guarantee Companies are expected to among other responsibilities, provide third-party credit risk mitigation to lenders through the absorption of a portion of the lender’s losses on the loans made to Nigeria-based MSMEs in case of default.

The guideline said subject to the prior approval in writing of the CBN, a CGC will not later than four months after the end of its financial year, publish its audited financial statements on its website and in a national daily newspaper printed and circulating in Nigeria; and display the abridged financial statement in a conspicuous position in each of its offices and branches in Nigeria.

Currency outside the banks as of February 2022 was N2.73 trillion, which is 1.7 per cent lower than the N2.78 trillion as of the previous month, representing a decline of N47.53 billion.Credit by banks to the private sector increased by N1.46 trillion in February to N36.91 trillion from N35.45 trillion recorded as of the previous month. This represents an increase 4.1 per cent month-on-month.

 

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