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CBN Grants National Operating Licences to Leading Fintechs and MFBs
The Central Bank of Nigeria (CBN) has upgraded the operating licences of major financial technology (fintech) companies and microfinance banks (MFBs), including Kuda, PalmPay, Paga, Opay, and Moniepoint, granting them national status after meeting key regulatory requirements.
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With the upgrade, the affected institutions are now authorised to operate across all 36 states of the federation and the Federal Capital Territory (FCT), marking a significant milestone in Nigeria’s evolving digital finance ecosystem.
CBN Confirms Compliance and Nationwide Reach
The Director of the Other Financial Institutions Supervision Department at the CBN, Mr. Yemi Solaja, confirmed the development in Lagos during the annual conference of the Committee of Heads of Banks’ Operations.
“Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded,” Solaja said. “In practice, their operations are already nationwide.”
He explained that the licence upgrade reflects the regulator’s recognition of the scale and reach of these institutions, many of which already serve customers across the country.
Emphasis on Physical Presence and Consumer Protection
Solaja stressed the importance of physical offices and structured customer support, particularly given the nature of fintech customers in Nigeria.
“Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise,” he noted.
Under the new national licence framework, fintechs and national MFBs are required to maintain physical offices for dispute resolution and customer engagement, in addition to meeting enhanced supervisory standards.
Higher Capital Requirements, Tighter Oversight
With national status comes stricter regulatory obligations. National microfinance banks, for instance, are required to meet a minimum capital base of ₦5 billion, alongside enhanced governance, risk management, and compliance frameworks.
According to the CBN, these measures are designed to strengthen financial stability while ensuring that fintechs continue to drive financial inclusion across underserved communities.
Reforms Build on Past Enforcement Actions
The licence upgrades follow earlier enforcement actions by the CBN aimed at tightening compliance in the digital finance space. In 2024, Moniepoint and Opay were each fined ₦1 billion for breaches related to Know-Your-Customer (KYC) requirements.
An official CBN statement noted that the upgrade “helps close regulatory gaps, ensures customer funds are better protected, and strengthens confidence in Nigeria’s digital financial system.”
Not a Shift to Commercial Banking
The apex bank clarified that the licence upgrade does not convert fintechs or microfinance banks into traditional commercial banks.
“Rather, it ensures that as they grow and operate nationwide, they do so under tighter supervision to keep the financial system stable and secure,” the statement said.
The CBN added that the reform supports the country’s financial inclusion agenda, as fintech platforms play a critical role in reaching individuals and small businesses that conventional banks often struggle to serve.
Nigeria’s Fintech Sector Remains Africa’s Largest
Nigeria remains Africa’s largest fintech market, accounting for an estimated 36 per cent of total fintech funding on the continent between 2020 and mid-2024. The sector’s growth is driven by a youthful population, high mobile phone penetration, and rising demand for digital payments, banking, and credit services.
Leading players such as Flutterwave, OPay, Moniepoint, and PalmPay continue to shape the payments and digital banking landscape, even as the industry navigates regulatory changes, infrastructure constraints, and currency volatility.
Strong Growth Outlook Despite Challenges
Looking ahead, Nigeria’s fintech sector is projected to maintain strong momentum. Industry estimates suggest the market could reach a total value of $4.24 billion by 2033, reflecting sustained innovation, expanding digital adoption, and deeper financial inclusion.
