The Central Bank of Nigeria (CBN) has officially upgraded the licenses of several leading FinTech companies and Microfinance Banks (MFBs), including Opay, Moniepoint, Kuda Bank, Palmpay, and Paga, from regional to national status. This move authorizes them to operate across the entire country following strict compliance with regulatory requirements.
The upgrade recognizes the rapid growth of these institutions driven by mobile technology platforms and expansive agent networks that have outpaced their previous restricted licenses.
Yemi Solaja, Director of the Other Financial Institutions Supervision Department, confirmed the development on the sidelines of the annual conference of the Committee of Heads of Banks’ Operations in Lagos. He stated, “Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide.”
Solaja emphasized that maintaining a physical presence remains critical, particularly for customers in the informal sector. “Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise,” he explained.
By obtaining national licenses, these FinTech firms are now subject to enhanced regulatory measures, including meeting higher capital requirements—set at N5 billion for national MFBs—and operating physical offices to handle dispute resolution efficiently. This regulation aims to balance the drive for financial inclusion with improved customer protection and operational transparency.
This licensing reform follows the CBN’s recent enforcement initiatives, notably the imposition of N1 billion fines each on Moniepoint and Opay in 2024 for violations related to Know Your Customer (KYC) compliance. These actions underline the central bank’s commitment to strengthening governance and standards in Nigeria’s burgeoning digital financial sector.
