Central Bank of Nigeria (CBN) has approved the upgrade of operating licences for major FinTech companies and Microfinance Banks (MFBs), including Opay, Moniepoint MFB, Kuda Bank, Palmpay and Paga, to national status, formalising their nationwide operations after fulfilling regulatory compliance requirements.
CBN
The development addresses the rapid expansion of these digital platforms, which have leveraged mobile technology and extensive agent networks to serve millions across Nigeria, outgrowing their previous regional or state-level licences.
Yemi Solaja, Director of the CBN’s Other Financial Institutions Supervision Department, announced the upgrades during the annual conference of the Committee of Heads of Banks’ Operations (CHBO) in Lagos.
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Institutions like Moniepoint MFB, Opay, Kuda Bank and others have now been upgraded. In practice, their operations are already nationwide, Solaja stated, highlighting the mismatch between prior licensing scopes and actual service footprints.
He underscored the critical need for physical customer support infrastructure, especially for informal sector users who form the bulk of their clientele, noting that Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise.
With national licences, these institutions must adhere to elevated standards, including a minimum capital base of N5 billion for national MFBs, establishment of dedicated offices for complaint resolution, and rigorous Know-Your-Customer (KYC) protocols to bolster consumer protection and financial system stability.
The reforms align with CBN’s broader strategy to integrate large-scale digital operators into a robust regulatory framework commensurate with their reach, while harnessing their potential to deepen financial inclusion across Nigeria’s underserved populations.
This milestone follows intensified oversight, exemplified by 2024 penalties of N1 billion each imposed on Moniepoint and Opay for KYC non-compliance during routine audits, alongside similar actions against other players like Kuda and Palmpay, which prompted operational overhauls.
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Such measures reflect the apex bank’s commitment to balancing innovation with risk management in the fintech sector, which has revolutionised access to banking services for millions in the informal economy through agent banking and mobile wallets.
Industry observers view the national upgrades as a vote of confidence in these trailblazers, while signalling that sustained compliance remains non-negotiable for their continued dominance in Nigeria’s digital finance ecosystem.
