The Central Bank of Nigeria (CBN) has upgraded the licences of selected fintech firms including Opay, Moniepoint, Paga, Kuda Bank and microfinance banks (MFBs) to national status, reflecting the institutions’ expanding reach across the country.
The announcement was made by Mr. Yemi Solaja, Director of the Other Financial Institutions Supervision Department (OFISD) at the CBN, during the annual conference of the Committee of Heads of Banks’ Operations (CHBOs) held in Lagos.
The move is aimed at aligning licensing structures with the actual operational footprint of fintechs and MFBs, ensuring adequate regulatory oversight as these institutions now serve customers nationwide.
Solaja highlighted that the CBN observed a growing mismatch between the limited licences held by some fintechs and their actual nationwide presence.
He also clarified that the upgrade is not automatic, stressing that national licences are granted only after institutions meet key regulatory benchmarks.
Fintechs and tech-driven MFBs have rapidly expanded across Nigeria, driven by mobile technology and agent banking models. Initially licensed under unit, tier-one, or tier-two frameworks, many of these operators were only permitted to serve limited regions.
However, digital platforms such as Kuda Bank, Opay, Moniepoint, Palmpay and others built nationwide user bases, creating a regulatory gap between licence scope and operational reality.
The CBN introduced reforms to bridge this gap, ensuring that the licensing structure matches the institutions’ true scale.
Dr. Emmanuel Ojo, a financial policy analyst, said the upgrade is a positive step in strengthening regulatory compliance and consumer protection.
“These fintechs are now serving millions of Nigerians, many of whom operate in the informal economy. Upgrading licences to national status ensures these platforms are accountable and regulated properly. It also strengthens consumer confidence,” he said.
Mrs. Adaeze Okonkwo, a banking compliance expert, described the move as a necessary regulatory catch-up, adding that it will help close gaps in the financial system.
“The CBN is aligning its regulatory framework with reality. This upgrade forces fintechs to meet higher capital and compliance requirements, which is crucial for long-term stability,” she said.
With national licences now issued, fintechs and MFBs are subject to stricter capital requirements and compliance standards.
National MFBs must now meet a capital requirement of N5 billion, up from N2 billion. Other regulatory benchmarks include: Unit MFB Tier II: N50 million; Unit MFB Tier I: N200 million; State MFB: N1 billion.
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