The Central Bank of Nigeria (CBN) has approved the upgrade of licences held by several leading FinTech companies and microfinance banks (MFBs), including Opay and Moniepoint, allowing them to operate as national institutions across the country.
The upgrade was disclosed by Yemi Solaja, director of the Other Financial Institutions Supervision Department (OFISD) at the CBN, during the recent annual conference of the Committee of Heads of Banks’ Operations (CHBOs) held in Lagos. He said the move reflects the regulator’s effort to bring licensing structures in line with the actual scale and reach of fast-growing digital financial institutions.
According to Solaja, many FinTechs and MFBs originally licensed to operate within limited geographical areas have expanded their services nationwide through digital platforms and agent banking networks, creating a gap between their licence category and real operations. He said the licence upgrade would strengthen regulatory oversight and protect customers, especially those in the informal sector.
Speaking at the conference, Solaja also called for stronger collaboration between commercial banks and FinTech firms to reduce the volume of cash circulating outside the formal banking system. He encouraged financial institutions to embrace “digital-first” operations as part of efforts to improve efficiency and deepen financial inclusion.
Explaining the rationale behind the upgrade, the CBN official said institutions such as Moniepoint MFB, Opay, Kuda Bank and others now have customers spread across Nigeria, despite initially holding limited licences. He noted that most of their users are informal sector participants who need clear channels for complaints and dispute resolution. According to him, granting national licences ensures customers know where to report issues and helps the regulator maintain closer supervision.
Solaja stressed that the upgrade process is not automatic, adding that only institutions that meet strict regulatory, operational and capital requirements qualify for national status. He said the CBN remains committed to ensuring that only compliant and well-governed institutions are allowed to operate at that level.
In recent years, FinTechs and technology-driven microfinance banks have experienced rapid growth, largely due to mobile banking solutions and expansive agent networks that reach both urban and rural communities. Although many were initially licensed under unit, state or tiered frameworks, platforms such as Opay, Moniepoint, Palmpay, Paga and Kuda Bank built nationwide user bases, prompting concerns about regulatory gaps.
To address these concerns, the CBN introduced reforms aimed at matching licence categories with operational realities. The regulator also insists that nationally licensed FinTechs and MFBs maintain physical offices in key locations, despite their digital focus. These offices are expected to help resolve disputes, serve customers who require face-to-face interaction and support the informal sector.
With the new national licences, affected institutions are now subject to higher capital requirements and stricter compliance standards. National MFBs are required to maintain a minimum capital base of N5 billion, compared to N2 billion previously. Other categories include N50 million for Unit MFB Tier II, N200 million for Unit MFB Tier I, and N1 billion for state MFBs.
The CBN has also demonstrated its tougher regulatory stance in recent years. In 2024, the apex bank fined Moniepoint and Opay N1 billion each for violations related to Know Your Customer (KYC) requirements, reinforcing its commitment to enforcing customer due diligence rules.
Overall, the licence upgrade signals a broader regulatory shift by the CBN to formalise the operations of digital finance players, improve oversight, and build greater trust in Nigeria’s evolving financial system.
