The Central Bank of Nigeria (CBN) has upgraded the operating licences of several major financial technology (FinTech) companies and microfinance banks, allowing them to operate fully across the country. The upgrade covers key players such as Opay, Moniepoint Microfinance Bank, Kuda Bank, Palmpay and Paga.
The move means that these companies, which were previously operating under regional or state licences, now have national licences after meeting regulatory requirements set by the apex bank. With the new status, they can legally provide services in all parts of Nigeria without restrictions tied to specific states or regions.
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. He explained that the decision followed the rapid growth of the FinTech firms and the wide reach of their services across the country.
According to Solaja, many of these companies had already expanded beyond the limits of their former licences through digital platforms and large agent networks. “Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide,” he said.
Over the past few years, FinTech companies have played a major role in Nigeria’s financial system. Through mobile apps and thousands of agents, they have provided banking services to millions of Nigerians, especially those in rural areas and the informal sector who were previously excluded from the formal banking system.
These services include money transfers, bill payments, savings, loans and merchant payment solutions. As a result, companies like Opay, Moniepoint and Palmpay have recorded massive customer growth and transaction volumes, making them some of the most widely used financial platforms in the country.
The CBN’s decision to grant national licences reflects this reality and aims to bring regulation in line with current operations. However, the upgrade also comes with stricter responsibilities and higher standards for the affected companies.
One major requirement is increased capital. For instance, national microfinance banks are now required to have a minimum capital base of N5 billion, which is significantly higher than what is required for state or unit microfinance banks. This is meant to strengthen the financial stability of the institutions and protect customers’ funds.
In addition, the CBN has stressed the importance of physical offices for customer support and dispute resolution. Solaja noted that many users of FinTech services operate in the informal sector, including traders, artisans and small business owners.
“Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise,” he said. This means that despite their digital nature, FinTech companies are expected to maintain physical offices where customers can lodge complaints and resolve problems.
The upgrade also signals tighter regulatory oversight. In recent years, the CBN has increased scrutiny of digital financial services, particularly in areas such as customer identification, data protection and anti-money laundering measures.
In 2024, the CBN imposed fines of N1 billion each on Moniepoint and Opay for failures related to Know Your Customer (KYC) requirements. KYC rules are designed to ensure that financial institutions properly verify the identity of their customers to prevent fraud, money laundering and other illegal activities.
Those sanctions sent a strong message to the fast-growing FinTech sector that innovation must go hand in hand with compliance. Industry analysts say the latest licence upgrades show that the CBN is willing to support growth, provided companies meet regulatory standards.
Nigeria has one of the largest FinTech markets in Africa, driven by a young population, widespread mobile phone use and gaps in traditional banking services. The government and regulators see digital finance as a key tool for achieving financial inclusion and boosting economic activity.
By granting national licences, the CBN is expected to improve service delivery, enhance consumer protection and create a more stable operating environment for FinTech firms. At the same time, customers may benefit from better support systems and more reliable services.
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