CBN Upgrades Fintechs and Microfinance Banks to National Licenses

The Central Bank of Nigeria (CBN) has upgraded the licenses of major fintechs and microfinance banks, including Opay, Moniepoint, and Kuda, granting them full national operating status.

The announcement was made by Yemi Solaja, Director of the Other Financial Institutions Supervision Department, during a banking conference in Lagos. He said the move reflects the widespread operations of these institutions across Nigeria.

From Regional to Nationwide Reach

Previously, many fintechs and microfinance banks operated under unit, state, or tiered licenses, limiting them to specific regions. However, platforms like Opay, Moniepoint, Kuda, and PalmPay rapidly expanded nationwide through mobile apps and agent networks.

The CBN noted that there was a discrepancy between their original licenses and actual operations. By granting national licenses, the regulator aligns the legal status of these companies with their real-world reach.

Implications for Customers and Operators

With national status, these companies will now be subject to:

• Stricter compliance rules
• Higher capital requirements
• Enhanced supervision
• Obligations to maintain physical touchpoints and strengthen KYC/anti-money laundering processes

The upgrade also ensures clarity for customers, particularly regarding dispute resolution and complaint mechanisms, as services increasingly move to digital platforms.

Driving Financial Inclusion

Fintechs and agent networks already play a crucial role in financial inclusion, especially in rural and underserved areas. The CBN views the licensed fintechs as key tools for expanding access to financial services, provided they operate under strong regulatory frameworks.

For context, Opay leads with 563,262 POS agents out of 1.5 million nationwide, highlighting the scale of digital financial services in Nigeria.