The Central Bank of Nigeria (CBN) has formally approved nationwide operating licences for several prominent fintech companies and microfinance banks, including Opay, Moniepoint, Kuda, and PalmPay.
The announcement was made by Yemi Solaja, Director of the Other Financial Institutions Supervision Department at the CBN, during a banking industry conference in Lagos. Solaja explained that the licence upgrades reflect the true national footprint of these institutions, many of which have been operating across Nigeria for years despite holding more limited approvals.
CBN Regularises Fintechs’ Nationwide Operations
Historically, most fintechs and microfinance banks in Nigeria were licensed as unit, state, or tier-based institutions, restricting their operations to defined geographic areas. However, digital platforms such as Opay, Moniepoint, and Kuda rapidly scaled beyond these limits, leveraging mobile applications, agent banking networks, and digital payments infrastructure to reach customers nationwide.
The CBN acknowledged that this growth created a gap between regulatory classification and operational reality. By upgrading these firms to national status, the regulator is aligning their licences with their actual activities within Nigeria’s financial ecosystem.
According to the CBN, the move also enhances consumer clarity and protection, particularly in digital banking, where customers often lack physical branches to resolve disputes or lodge complaints.
Increased Regulation and Capital Requirements
With national licences now in place, the affected fintechs and microfinance banks will be subject to more rigorous regulatory standards, including:
- Substantially higher capital thresholds, especially for national microfinance banks
- Expanded compliance responsibilities
- Stronger governance and internal control frameworks, particularly in KYC and AML compliance
These requirements place national operators under closer supervision than their unit or state-level counterparts.
Strengthening Financial Inclusion Through Regulation
Fintech companies and agent banking networks have become essential to financial inclusion efforts, particularly in communities underserved by traditional banks. The CBN recognises their role in expanding access to digital payments and financial services, while emphasising that scale must be matched with robust oversight.
By granting nationwide licences, the regulator is signalling support for fintech innovation, while reinforcing accountability as these platforms process a growing volume of transactions across the country.
New Expectations for Service Delivery and Infrastructure
The licence upgrade also raises the bar for operational standards. Nationally licensed fintechs will be expected to:
- Establish physical presence or service touchpoints in key regions
- Enhance customer support and dispute resolution mechanisms
- Bolster risk management, compliance, and monitoring systems
The CBN expects these institutions to support their national reach with improved service quality and stronger consumer safeguards.
Conclusion
The CBN’s decision to grant national operating licences to Opay, Moniepoint, Kuda, and other fintechs marks a major milestone in Nigeria’s digital finance sector. By formalising their nationwide status, the regulator is both legitimising their expansion and subjecting them to stricter regulatory oversight.
As fintechs continue to transform access to financial services in Nigeria, the move highlights the CBN’s balancing act between innovation, inclusion, and financial system stability.
