The Central Bank of Nigeria (CBN) has upgraded the operating licences of several leading FinTech companies and Microfinance Banks (MFBs) to national status, granting them approval to operate fully across the country after meeting regulatory requirements.
The upgrade affects key digital financial service providers including Moniepoint MFB, Opay, Kuda Bank, Palmpay, and Paga, many of which have rapidly expanded through mobile platforms and extensive agent networks, effectively outgrowing their former regional licences.
Akahi News gathered that the development represents a significant regulatory shift aimed at strengthening oversight, improving consumer protection, and deepening financial inclusion in Nigeria’s fast-evolving digital banking ecosystem.
CBN Confirms Nationwide Operational Status
Confirming the development in Lagos, the Director of the Other Financial Institutions Supervision Department at the CBN, Yemi Solaja, disclosed the upgrade during the annual conference of the Committee of Heads of Banks’ Operations.
“In practice, institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. Their operations are already nationwide,” Solaja said.
He explained that while many of the FinTech firms had already built national footprints through technology and agency banking models, formal licence upgrades were necessary to align their scale of operations with regulatory expectations.
Akahi News learnt that the move provides clearer legal backing for their nationwide services while tightening compliance standards.
Physical Presence, Consumer Protection Emphasised
Solaja stressed the importance of maintaining physical offices for customer engagement and dispute resolution, particularly because a large percentage of FinTech customers operate in Nigeria’s informal economy.
“Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise,” he noted.
With national licences, the upgraded institutions are now required to establish physical offices for customer support and dispute resolution across their operational zones, ensuring improved accountability and service reliability.
Akahi News gathered that this requirement is expected to reduce customer complaints related to transaction disputes, failed transfers, and account access challenges often associated with purely digital platforms.
Higher Capital Thresholds and Stronger Oversight
The national licence status comes with significantly higher capital requirements and stricter compliance obligations. For instance, national microfinance banks are required to maintain a minimum capital base of ₦5 billion, alongside enhanced governance and risk management frameworks.
Regulators believe the stricter thresholds will improve the financial stability of fast-growing FinTech institutions and protect depositors in the event of market shocks.
Akahi News learnt that the reforms also support the CBN’s broader agenda to sanitise the digital finance space while sustaining innovation and inclusion.
Regulatory Discipline Following Past Sanctions
The upgrade follows earlier enforcement actions by the apex bank, including penalties imposed in 2024 on Moniepoint and Opay over Know-Your-Customer (KYC) compliance failures. Both companies were fined ₦1 billion each, underscoring the regulator’s determination to enforce operational discipline in the digital banking sector.
Analysts say the combination of sanctions and licence upgrades reflects a balanced regulatory approach — encouraging growth while maintaining strict compliance standards.
Akahi News gathered that the CBN intends to continue strengthening monitoring mechanisms as more digital platforms scale their operations nationwide.
Implications for Financial Inclusion and Competition
Industry stakeholders believe the licence upgrade will enhance competition in Nigeria’s financial services sector, offering consumers broader access to affordable digital banking solutions, faster payments, and expanded credit services.
With stronger regulatory backing, the FinTech firms are expected to expand agent networks into underserved communities, further driving financial inclusion, particularly among small traders, artisans, and rural populations.
However, experts caution that sustainable growth will depend on consistent regulatory compliance, cybersecurity resilience, customer education, and transparent dispute resolution systems.
Strengthening Nigeria’s Digital Finance Ecosystem
The CBN’s decision signals a renewed commitment to building a resilient, inclusive, and well-regulated digital financial ecosystem capable of supporting Nigeria’s economic transformation agenda.
Akahi News learnt that as more FinTechs transition into national operators, the regulatory environment will increasingly prioritise consumer protection, financial stability, and systemic integrity.
For millions of Nigerians who rely daily on mobile banking and agent services, the development promises improved service reliability, stronger safeguards, and wider access to financial products.
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By Joseph Iyaji | Akahi News
Joseph Iyaji is a journalist, educator, and founder of Akahi G. International, Akahi Tutors, and Akahi News. Read more about him here.
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