The Central Bank of Nigeria (CBN) on Tuesday, January 27, upgraded the operating licenses of several leading financial technology firms and microfinance banks (MFBs) to national status by allowing them to operate fully across all states of the federation.
This was announced by Yemi Solaja, the Director of the Other Financial Institutions Supervision Department at the Central Bank of Nigeria (CBN), during the annual Committee of Heads of Banks’ Operations (CHBOs) conference held in Lagos.
According to Solaja, the license upgrade is not automatic, noting that affected institutions were required to meet specific regulatory, compliance, and operational benchmarks before qualifying.
He disclosed that many digital lenders and payment service providers had expanded their operations beyond the limits of their original licenses, prompting the regulator to formally update their authorizations to reflect their nationwide reach.
Under the revised framework, major players, including Moniepoint Microfinance Bank, OPay, Kuda Bank, and other fintechs, now hold national licenses, granting them approval to operate across Nigeria rather than within restricted regions.
15 things you probably did not know about the recent CBN upgrade of OPay, Moniepoint, Kuda, and others
Fintechs and microfinance banks with national licenses are now fully regulated and under CBN supervision with tighter monitoring of operations
Microfinance banks and fintechs with national licenses must now maintain a minimum capital base of about ₦5 billion, alongside stricter reporting, governance, and risk management conditions
Microfinance banks and fintechs with national licenses are now mandated to establish physical branches or service centers in key locations, improving access for customers who need in-person support
Microfinance banks and fintechs with national licenses must enhance complaint handling, transaction reversals, and customer redress mechanism
Fintechs with national license are still not permitted to allow customers to deposit money and are still limited to services permitted under their license categories
Microfinance banks and fintechs with national licenses can now scale agent networks across Nigeria and boost access to cash-in, cash-out, and payment services, especially in underserved areas.
Fintechs and microfinance banks with national licenses can now improve access to digital payments, savings, and credit for rural communities and informal workers
Fintechs and microfinance banks with national licenses can now maintain nationwide infrastructure, compliance teams, and physical outlets to increase operating expenses for affected firms
Fintechs and microfinance banks with national licenses may likely merge due to higher capital and compliance demands
Fintechs and microfinance banks with national license will now intensify scrutiny of data privacy, cybersecurity and customer information protection
Fintechs and microfinance banks with a national license will now compete with commercial banks in retail payments, SME services, and others
Fintechs and microfinance banks with national licenses will face tougher sanctions for violations and regulatory breaches, including fines, operational restrictions, or license withdrawal
Fintechs and microfinance banks with a national license will now be exposed to higher transparency expectations such as frequent disclosures, audits, and performance reports to monitor financial stability risks
Fintechs and microfinance banks with a national license will likely attract additional local and foreign investment, strengthening or boosting investors’ confidence or trust in Nigeria’s fintech sector.