The Central Bank of Nigeria (CBN) has approved the upgrade of operating licences for several leading FinTech companies and Microfinance Banks (MFBs) to national status, enabling them to conduct business across the country after meeting regulatory requirements.
The affected institutions include Moniepoint Microfinance Bank, Opay, Kuda Bank, Palmpay and Paga, all of which have experienced rapid expansion driven by mobile platforms and extensive agent networks, effectively surpassing the scope of their former regional licences.
The Director of the Other Financial Institutions Supervision Department of the CBN, Mr. Yemi Solaja, confirmed the development at the annual conference of the Committee of Heads of Banks’ Operations held in Lagos.
According to Solaja, the institutions had already been operating on a nationwide scale prior to the formal upgrade. “Institutions like Moniepoint MFB, Opay, Kuda Bank and others have now been upgraded. In practice, their operations are already nationwide,” he said.
He stressed the need for FinTech operators to establish physical offices to enhance customer support and dispute resolution, noting that a significant portion of their clientele operates within the informal sector.
With the national licence status, the affected FinTechs and MFBs are now subject to higher regulatory obligations, including a minimum capital requirement of N5 billion for national microfinance banks, as well as the maintenance of physical offices for customer engagement, while continuing to promote financial inclusion.
The licence upgrade follows earlier regulatory actions by the apex bank, including the imposition of N1 billion fines on Moniepoint and Opay in 2024 over breaches related to Know Your Customer (KYC) requirements, reflecting the CBN’s commitment to strengthening oversight and standards within Nigeria’s digital financial ecosystem.
Source: Vanguard
