The Central Bank of Nigeria (CBN) has approved the upgrade of operating licences for several leading fintech companies and microfinance banks, granting them national status and permitting full nationwide operations.
The affected institutions include Moniepoint Microfinance Bank, Opay, Kuda Bank, Palmpay and Paga, all of which have expanded rapidly through mobile platforms and extensive agent networks, surpassing the limits of their former regional licences.
The Director of the CBN’s Other Financial Institutions Supervision Department, Yemi Solaja, announced the development in Lagos during the annual conference of the Committee of Heads of Banks’ Operations. He explained that the upgrade formalises what has effectively been nationwide activity by the institutions.
“In practice, their operations are already nationwide,” Solaja said, adding that the new status aligns regulation with operational reality.
He stressed that despite their digital focus, physical offices remain essential, particularly as most customers operate within the informal sector and require accessible channels for complaints and dispute resolution.
Under the new national licences, the fintech firms are now subject to stricter regulatory conditions, including higher capital requirements — with national microfinance banks required to maintain a minimum capital base of N5 billion — and the obligation to establish offices for customer engagement.
The licence upgrade also reflects the CBN’s broader push to deepen financial inclusion while tightening oversight in the digital finance space. This follows earlier enforcement actions in 2024, when Moniepoint and Opay were each fined N1 billion over breaches of Know-Your-Customer (KYC) regulations.
