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The Central Bank of Nigeria (CBN) has launched a user-friendly online platform, the CBN Licensing, Approval and Other Requests Portal (CBN LARP), for the submission of microfinance bank (MFB) license applications. This initiative is aimed at simplifying and expediting the licensing process, replacing the existing manual procedure.
According to a statement by Isa AbdulMumin, the CBN’s Director of Corporate Communications, the CBN LARP offers several advantages, including a streamlined process, time efficiency, improved communication, and robust security measures.
“By digitizing the application process, the Bank aims to improve accessibility, reduce paperwork, and expedite license approvals, benefiting both applicants and the economy,” AbdulMumin noted.
Starting from September 25, 2023, individuals or entities seeking MFB licenses must initiate a parallel run by submitting both hardcopy and online applications using the CBN LARP. The hardcopy submission must reference a valid application from the online submission in its cover letter. This parallel run period will extend until December 31, 2023. After this date, manual submissions of hardcopy MFB license applications will no longer be accepted.
Prospective MFB applicants are encouraged to visit www.larp.cbn.gov.ng from September 25, 2023, to submit their MFB license applications online. The CBN LARP platform provides comprehensive guidance and assistance to users, including a downloadable user guide.
For further information, applicants can contact the dedicated helpdesk via email at cbnlarp-helpdesk@cbn.gov.ng.
The CBN clarified that it will continue to accept manual applications for all other types of licenses until further notice.
Microfinance banks play a crucial role in extending financial services to underserved populations, especially those not served by traditional financial institutions. The CBN has set an ambitious target of achieving 95 percent financial inclusion by 2024, with the current rate standing at 64 percent.
Despite the challenges faced by microfinance banks due to recent economic downturns, some, such as LAPO MFB, AB, Baobab, Lovonus, and Addosser, have stood out by embracing technology in their products and services, as highlighted in a recent BusinessDay report.
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