CBN sets N100,000 as application fee for credit guarantee companies


The Central Bank of Nigeria (CBN) has issued guidelines for licensing, regulation and supervision of credit guarantee companies (CGCs).

The CBN director of the financial policy and regulation department, Ibrahim Tukur, made this known in a recent circular.

Tukur explained that the guidelines would seek to ultimately reduce credit risk, stimulate lower interest rates on loans and complement other initiatives of regulatory authorities aimed at stimulating lending to MSMEs.

The apex bank said the application for a CGC licence is in two stages: approval-in-principle (AIP) and a final licence.

the Circular read in part“The promoters of a CGC shall be required to submit a formal application for the grant of a CGC licence addressed to the Governor of the CBN,” 

“A non-refundable application fee of N100,000 (One Hundred Thousand Naira) only, or such other amount as the CBN may specify, in bank draft payable to the CBN.

“Not later than six (6) months after obtaining the AIP, the promoters of a proposed CGC shall submit an application for the grant of a final licence to the CBN.

“Non-refundable licensing fee of N1,000,000.00 (One Million Naira) only, or such amount as may be prescribed by the CBN, in bank draft payable to the CBN.”

It also said CGCs would be required to commence operations with a minimum paid-up capital of N10 billion; and N50,000 for change of company name, if necessary.

“Promoters should note that in compliance with the Banks and Other Financial Institutions Act (BOFIA) 2020, the investment of share capital deposit shall be subject to availability of investment instruments.

“Upon the grant of license or otherwise, the CBN shall refund the sum deposited to the promoters, together with the investment income, if any, after deducting administrative expenses and tax on the income,” the statement added.

Last year, the apex bank also set N1m as an application fee for operating a payment service holding company.

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