Move expands nationwide operations for leading FinTechs and MFBs as regulator tightens oversight and capital requirements

The Central Bank of Nigeria (CBN) has approved the upgrade of operating licences for several major FinTech companies and Microfinance Banks (MFBs), granting them national status and allowing full-scale operations across the country.

The institutions affected by the upgrade include Moniepoint Microfinance Bank, Opay, Kuda Bank, Palmpay and Paga, all of which had previously operated under regional or limited licences. The approval follows their compliance with key regulatory and supervisory requirements set by the apex bank.

The licence upgrade reflects the rapid expansion of these digital financial service providers, whose operations have already assumed a nationwide footprint through mobile banking platforms, wide agent networks and strong penetration of Nigeria’s informal sector.

Confirming the development, the Director of the Other Financial Institutions Supervision Department at the CBN, Mr. Yemi Solaja, made the disclosure at the annual conference of the Committee of Heads of Banks’ Operations held in Lagos.

“In practice, their operations are already nationwide,” Solaja said, noting that institutions such as Moniepoint MFB, Opay and Kuda Bank have long gone beyond their original geographic limits before receiving formal national approval.

He stressed that as these platforms continue to scale, physical presence becomes increasingly important for consumer protection, dispute resolution and effective supervision. According to him, most users of digital financial services are players in the informal sector who require clear and accessible channels for lodging complaints and resolving transaction-related issues.

“With their customer base largely in the informal sector, there must be identifiable offices where customers can go when problems arise,” Solaja explained.

Under the new national licences, the affected institutions are now subject to stricter regulatory conditions. These include higher minimum capital thresholds—such as the N5 billion requirement for national microfinance banks—as well as obligations to maintain physical offices that can adequately handle customer complaints and regulatory engagements.

The development aligns with the CBN’s broader strategy to strengthen oversight in Nigeria’s fast-growing digital finance ecosystem while still promoting financial inclusion. It also follows earlier enforcement actions by the regulator, including fines of N1 billion imposed on Moniepoint and Opay in 2024 over Know Your Customer (KYC) compliance breaches.

Those sanctions underscored the CBN’s resolve to ensure that innovation and rapid growth in the FinTech space do not come at the expense of regulatory standards, consumer protection and financial system stability.

Stay Updated with the Latest News – Follow Daily Observer on X (formerly Twitter) @DailyObserverNG