CBN releases new draft guidelines for Finance Houses

The Central Bank of Nigerian (CBN) has released draft guidelines for the operations of finance houses operating in the country

The President of Finance Houses Association of Nigeria (FHAN), Samuel Durojaye, made the disclosure of the impending overhaul of the sub-sector in an interview with the News Agency of Nigeria (NAN) in Lagos.

According to him, the CBN in the draft, proposed N100 million as the new capital base for the sub-sector.

The FHAN President described the proposed capital base as ideal for the operations of the association’s members.

Durojaye also said that the association had studied the proposals and made commendations to the CBN.

“In the new draft sent to us, the apex bank is proposing N100 million. The N100 million is just ideal,” he said.

NAN reports that the association had in 2013 projected a new capital base of N250 million, as against the current N20 million.

He said that N20 million was not enough to operate as a finance house, in addition to the increasing overhead costs.

Durojaye said their support for the proposed new capital base stemmed from the fact that it would assist in leveraging further financial intermediation.

He commended the CBN for the steps taken to reform the sub-sector, to enable it play its role in the nation’s finance value chain

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