The Central Bank of Nigeria (CBN) has formally upgraded the operating licences of several leading financial technology companies and microfinance banks (MFBs) to national status, a development that aligns their legal operating scope with their actual nationwide footprint and signals intensified regulatory oversight of digital finance players.
The apex bank disclosed the licence upgrades at the annual Conference of the Committee of Heads of Banks’ Operations (CHBOs) held in Lagos on Monday, where officials said the move addresses a growing regulatory gap created by the rapid expansion of digital financial services across Nigeria.
Yemi Solaja, Director of the Other Financial Institutions Supervision Department (OFISD) at the CBN, confirmed the approvals, noting that affected institutions had outgrown the geographic limits of their earlier licences through widespread digital adoption and extensive agent networks.
“Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide,” Solaja said, underlining the rationale for formalising their status.
The upgrade applies to key players that have amassed significant customer bases across Nigeria’s 36 states and the Federal Capital Territory, including Moniepoint Microfinance Bank, OPay, Kuda Bank, Palmpay, and Paga.
CBN officials explained that many fintechs and digital lenders were originally licensed under unit, tier-one or tier-two frameworks, meaning their activities were restricted to certain regions. However, these operators continued to expand digitally beyond those boundaries, creating a disconnect between licence classification and real-world operations.
The national licences now legally authorise full nationwide operations, allowing the institutions to provide financial services in all parts of the country without geographic limitations. The regulator said this change will help strengthen systemic oversight, improve consumer protection, and close regulatory loopholes as digital platforms play an increasingly central role in Nigeria’s payments system and financial inclusion agenda.
With national status comes higher regulatory obligations. Operators now must meet enhanced regulatory, governance and risk management standards and are subject to stronger supervision by the apex bank.
The key changes, “National Microfinance Banks are now expected to maintain significantly higher minimum capital thresholds, with regulatory sources citing around ₦5 billion, up from prior lower tiers. Physical presence requirements: And also Fintechs will be expected to maintain physical offices or service centres in strategic locations to facilitate customer support and dispute resolution, particularly for users in the informal economy. Lastly, the national licences formalise regulatory authority over firms that already serve millions of Nigerians, ensuring consistent compliance with standards in areas such as know-your-customer (KYC), anti-money laundering, and consumer recourse mechanisms.”
Solaja emphasised the importance of clear accountability for customers, especially those operating in informal or underserved sectors: “Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise.”
The licence upgrades come against a backdrop of earlier regulatory enforcement actions. In 2024, both Moniepoint and OPay were reportedly fined ₦1 billion each for non-compliance with KYC standards, highlighting the CBN’s ongoing efforts to tighten oversight in digital finance.
Industry analysts suggest that granting national licences is part of broader policy reforms to formalise the fintech sector, drive greater financial inclusion, and bring more Nigerians into the organised financial system. It also positions the regulator to better manage risks associated with the rapid digitisation of transactions, particularly in an era where fintech adoption continues to accelerate.
For millions of Nigerians who rely on digital platforms for everyday transactions, from person-to-person transfers to payments and business services, the licensing upgrade should offer greater confidence in regulatory accountability and clarity on where to seek redress if issues arise. At the same time, consumers can expect operators to bolster customer service frameworks as they align with national-level supervisory standards.
