The Central Bank of Nigeria (CBN) has upgraded the operating licenses of several leading financial technology companies and microfinance banks to national status, enabling them to operate fully across the country after meeting key regulatory requirements.
The affected institutions include Moniepoint Microfinance Bank, Opay, Kuda Bank, Palmpay, and Paga, all of which have experienced rapid growth driven by mobile technology, digital platforms, and extensive agent networks. Their expansion, according to the CBN, has effectively outgrown the limitations of their previous regional licenses.
The Director of the Other Financial Institutions Supervision Department at the CBN, Mr. Yemi Solaja, confirmed the development in Lagos during the annual conference of the Committee of Heads of Banks’ Operations. He explained that while many of the FinTech firms had already been operating nationwide in practice, the license upgrade now formally aligns their legal status with the scale of their activities.
“In practice, institutions like Moniepoint MFB, Opay, Kuda Bank, and others are already operating nationwide,” Solaja said. “The upgrade only reflects the reality of their operations.”
Solaja stressed that the new status comes with increased regulatory obligations. Under the national license framework, affected institutions must meet higher minimum capital requirements, including a N5 billion capital base for national microfinance banks. They are also required to establish physical offices and customer service points to address complaints and resolve disputes.
He noted that this requirement is particularly important given that many of their customers operate within the informal sector and need accessible channels for support when issues arise.
The license upgrade follows recent enforcement actions by the CBN aimed at strengthening compliance in the digital finance space. In 2024, Moniepoint and Opay were each fined N1 billion for breaches related to Know Your Customer (KYC) regulations.
According to the apex bank, the reforms are part of broader efforts to balance innovation with stronger oversight, improve consumer protection, and deepen financial inclusion across Nigeria.
