Nofia Exits Cobac Administration Cameroon: CFA8.2 Billion Capital Boost

• Nofia SA, a Douala-based microfinance institution, announced on September 11, 2026, its exit from provisional administration imposed by Cobac.
• The exit followed a CFA7 billion capital increase, boosting Nofia's share capital from CFA1.2 billion to CFA8.2 billion, a 583.3% rise.
• Cameroon Business and Trade (CBT) SA became the majority shareholder as part of the recapitalization efforts.
• By June 30, 2026, Nofia had implemented 43 of Cobac's 56 recommendations, achieving 77% compliance.
• Cobac initially placed Nofia under administration on June 25, 2025, for an initial six-month period under Decision D-2025/134.

The successful Nofia exits Cobac administration Cameroon underscores the stringent regulatory framework governing the financial sector in the region.

Nouvelle Financière Africaine (Nofia SA), a microfinance institution based in Douala, has successfully concluded its period under provisional administration, a measure imposed by the Central African Banking Commission (Cobac). The institution announced on September 11, 2026, that Cobac had officially lifted the regulatory oversight that began in June 2025. This significant development followed a substantial capital injection of CFA7 billion, which played a pivotal role in fortifying Nofia's financial foundation.

The recapitalization effort saw Nofia's share capital surge from CFA1.2 billion to CFA8.2 billion, representing an impressive increase of 583.3%. This capital boost effectively multiplied the institution's capital by 6.8 times, a critical step in its journey back to normal operational status. Furthermore, the process involved Cameroon Business and Trade (CBT) SA acquiring a majority stake in Nofia, although the precise breakdown of the new ownership structure was not disclosed in the announcement.

By June 30, 2026, Nofia had made considerable progress in addressing the issues identified by the regulator. The institution reported that it had fully implemented 43 of the 56 recommendations issued by Cobac, achieving a compliance rate of 77%. While 13 recommendations remained outstanding at that time, the overall progress was deemed sufficient for the regulatory exit. This marks a significant milestone for Nofia as it moves forward from a period of intense regulatory scrutiny.

Cobac initially placed Nofia under provisional administration on June 25, 2025, through its Decision D-2025/134. This intervention was mandated for an initial duration of six months, with the primary objectives of ensuring the microfinance institution's business continuity and facilitating the restoration of its normal operating conditions. During this period, Bogni Ngueya was appointed as the administrator, tasked with overseeing these critical functions and guiding Nofia through its recovery phase.

The successful Nofia exits Cobac administration Cameroon underscores the stringent regulatory framework governing the financial sector in the region. Cobac's decision to end the administration was contingent upon the institution's ability to demonstrate significant capital strengthening and a robust commitment to implementing the regulator's recommendations. The substantial CFA8.2 billion capital increase, alongside the high rate of compliance with directives, were key factors in securing this regulatory exit.

While Nofia's announcement confirmed the lifting of the administration, it did not provide specific details regarding the reference number for Cobac's decision to terminate the measure. Similarly, information regarding any potential extensions granted beyond the initial six-month period was not included in the institution's statement. This highlights the focus on the outcome – the successful exit – rather than the procedural specifics of the final regulatory decree.

The resolution of Nofia's provisional administration offers valuable insights into the Central African Banking Commission's approach to maintaining stability within the financial sector, particularly concerning microfinance institutions. This case exemplifies how regulatory interventions, when coupled with significant capital injections and diligent adherence to corrective measures, can lead to the successful rehabilitation of distressed entities. The Nofia CFA8.2 billion capital increase serves as a clear benchmark for the scale of financial restructuring often required.

For financial institutions operating within Cameroon's financial sector regulation, this outcome reinforces the critical importance of capital adequacy and proactive compliance with regulatory directives. The process demonstrates Cobac's commitment to enforcing prudential standards and intervening when institutions face operational or financial challenges. The successful Nouvelle Financière Africaine regulatory exit provides a precedent for other institutions facing similar difficulties, illustrating a clear path toward recovery through capital strengthening and meeting regulatory requirements. This event underscores the dynamic interplay between regulatory oversight and institutional resilience in safeguarding the broader financial ecosystem.

This case illustrates the regulatory framework and enforcement actions by Cobac in Cameroon's financial sector, offering insights into the conditions and processes for exiting provisional administration. Lawyers advising financial institutions should note the emphasis on capital strengthening and compliance with regulator recommendations as key to resolving regulatory interventions.

Source: Based on financial sector reports.