The Central Bank of Nigeria (CBN) has elevated the operating licences of several major FinTech companies and microfinance banks to national status, enabling them to operate across all parts of the country after fulfilling regulatory conditions.
The upgrade covers prominent players in Nigeria’s rapidly expanding digital finance sector, including Moniepoint Microfinance Bank, Opay, Kuda Bank, Palmpay and Paga. Many of these firms have recorded significant growth through mobile platforms and wide-reaching agent networks.
Naija News reports that the development was confirmed in Lagos by the Director of the CBN’s Other Financial Institutions Supervision Department, Yemi Solaja, during the annual conference of the Committee of Heads of Banks’ Operations.
Solaja explained that the affected institutions had exceeded the scope of their previous regional or state licences, as their services already span the entire country.
“Institutions such as Moniepoint MFB, Opay, Kuda Bank and others have now received national licences,” he said, adding that “their operations are effectively nationwide.”
He also emphasised that despite being largely digital, FinTech companies are required to maintain physical offices to better serve customers, particularly those in the informal sector.
“Most of their users are in the informal sector, and they need a clear point of contact whenever issues arise,” Solaja noted.
According to him, the policy is intended to enhance consumer protection, improve dispute resolution processes and strengthen regulatory supervision within the fast-evolving digital finance landscape.
With the national licence status, the affected FinTechs and microfinance banks are now subject to higher capital thresholds and more stringent operational requirements. A national microfinance bank, for example, must maintain a minimum capital base of ₦5 billion and operate functional offices dedicated to handling customer complaints and disputes, while still leveraging technology to promote financial inclusion.
The CBN stated that the reforms are designed to strike a balance between innovation and financial stability, ensuring that rapidly growing institutions operate within a robust regulatory framework.
Naija News further reports that the licence upgrades come after a series of enforcement measures by the apex bank aimed at boosting compliance in the digital finance sector. In 2024, the CBN fined Moniepoint and Opay ₦1 billion each for Know-Your-Customer (KYC) violations, underscoring its commitment to upholding regulatory standards and safeguarding the financial system.
Industry analysts say the move reflects the CBN’s acknowledgment of the increasing importance of FinTechs to Nigeria’s economy, while simultaneously tightening oversight as their customer base and influence continue to grow.