The Central Bank of Nigeria has upgraded the operating licences of several major fintech companies and microfinance banks to national status, a move aimed at deepening financial inclusion and strengthening the country’s digital banking ecosystem.
The upgrade allows the affected institutions to operate across all states of the federation, expanding beyond their previous regional or state based limitations. Industry analysts say the development signals growing confidence by regulators in the capacity of technology driven financial institutions to handle larger customer bases and more complex operations.
According to financial sector sources, the newly approved national status comes with stricter compliance requirements, including higher capital thresholds, improved risk management systems, and stronger consumer protection frameworks. The CBN is said to be pushing for stability as fintech adoption continues to grow rapidly among Nigeria’s unbanked and underbanked populations.
Over the past decade, fintech firms have transformed access to financial services through mobile payments, digital lending, savings platforms, and agency banking. Many Nigerians now rely on digital platforms for everyday transactions, reducing dependence on traditional brick and mortar banks.
Experts say granting national licences could increase competition in the financial services space, encouraging innovation and lowering transaction costs. However, they also warn that rapid expansion must be matched with robust cybersecurity systems to prevent fraud and data breaches.
Microfinance banks that received national upgrades are expected to broaden their lending activities to small businesses, rural entrepreneurs, and low income earners across multiple regions. This could improve credit access for segments historically excluded from formal banking.
Consumer advocacy groups have welcomed the development but urged regulators to ensure transparency in fees and dispute resolution mechanisms. They stress that financial inclusion must go hand in hand with customer education.
The CBN has repeatedly stated its goal of achieving a more inclusive and resilient financial system. Observers believe the licence upgrades mark another step toward modernizing Nigeria’s financial landscape while tightening oversight in a fast evolving sector.
