The Central Bank of Nigeria (CBN) has officially upgraded the operating licences of several leading fintech companies and microfinance banks (MFBs) to national status, recognising their expanded footprint and aligning regulatory classification with actual market reach.
The announcement was made by 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) in Lagos.
Under the new licences, operators such as Moniepoint Microfinance Bank, OPay, Kuda Bank, Palmpay and Paga are now authorised to operate legally across all 36 states and the Federal Capital Territory, reflecting the nationwide scale they have already achieved through digital channels and extensive agent networks.
Closing the Regulatory Gap
The licence upgrades address a growing mismatch between earlier geographic licence tiers and the actual operations of fintech platforms that have organically expanded far beyond regional limits.
Solaja underscored that the transition to national status is conditional, granted only after firms satisfy regulatory benchmarks around governance, compliance, capital adequacy, and operational robustness.
The CBN’s move is part of a broader effort to strengthen oversight of digital finance while supporting financial inclusion and the country’s ongoing shift toward a cashless economy.
What it Means for Fintechs and Users
With national licences, affected fintechs and MFBs are now subject to stricter regulatory standards, including:
- Higher capital requirements: National MFBs must now maintain a minimum capital base of around ₦5 billion, up from the previous ₦2 billion threshold.
- Enhanced compliance and reporting obligations, aimed at boosting customer protection and systemic stability.
- Mandated physical service points in key locations, despite predominantly digital operations, to ensure support and dispute resolution for customers, particularly those in the informal sector.
The CBN also sees the licensing alignment as a way to close gaps in regulatory oversight and bring digitally led financial services within a framework that matches their economic impact and social reach.
Industry Response
Analysts and sector participants have welcomed the upgrade as a positive regulatory calibration that recognises the maturity of Nigeria’s fintech ecosystem while promoting safer, more resilient financial services.
By aligning licences with operational realities, the CBN aims to support sustainable growth, deepen consumer trust, and ensure that innovation moves in lockstep with prudential safeguards.
