This digital platform, known as the "CBN Licensing, Approval and Other Requests Portal," is set to replace the traditional manual application process that prospective MFB license applicants previously followed when submitting their requests to the CBN.
The announcement of this digital transition was made by the CBN's Director of Corporate Communications, Isa AbdulMumin, who revealed the details in a statement posted on the CBN's official website.
Starting from September 25, 2023, individuals and entities interested in obtaining an MFB license will be required to visit the CBN's designated website, www.larp.cbn.gov.ng, to submit their applications online.
This marks a significant shift from the traditional paper-based method to a more efficient and streamlined digital process.
The CBN is enthusiastic about the advantages that the online application system brings to the licensing process.
Some of these benefits include simplifying the application process, saving time, enhancing communication between applicants and the regulatory authority, and implementing robust security measures to protect sensitive information. By digitizing the application process, the CBN aims to improve accessibility, reduce paperwork, and expedite license approvals, which will ultimately benefit both applicants and the broader economy.
To facilitate a smooth transition to the new online system, the CBN has implemented a parallel run approach. Starting September 25, 2023, MFB license applicants are required to submit both hardcopy and online applications through the CBN Licensing, Approval and Other Requests Portal. The cover letter accompanying the hardcopy application must reference the valid application submitted online to be accepted.
It's worth noting that the CBN will continue to accept manual applications for all other types of licenses until further notice. This move toward digitization reflects the CBN's commitment to modernizing its processes and leveraging technology to enhance efficiency and transparency in the financial sector.
As of June 30, 2021, the CBN had issued licenses to 876 Microfinance Banks, indicating the importance of this sector in expanding financial services and promoting financial inclusion in Nigeria.