The Central Bank of Nigeria (CBN) has upgraded the operating licences of selected FinTechs companies and Microfinance Banks (MFBs) with nationwide operations to national status.
The disclosure was made by the Director of the Other Financial Institutions Supervision Department (OFISD), Mr. Yemi Solaja, during the just-concluded annual conference of the Committee of Heads of Banks’ Operations (CHBOs) in Lagos.
According to Solaja, the move is aimed at aligning licensing structures with the actual operational footprint of FinTechs and MFBs whose services now span across the country, in order to strengthen regulatory oversight.
At the conference, he urged closer collaboration between commercial banks and FinTechs to address the persistent problem of cash outside the formal banking system and to accelerate the adoption of “digital-first” banking operations.
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The CBN, he said, observed a growing mismatch between the limited licences held by some FinTechs and their expanding nationwide presence.
“Institutions like Moniepoint MFB, Opay, Kuda Bank and others have already been upgraded,” Solaja said.
“In reality, their activities are now all over the country. Most of their customers are informal people. They need to know where to report to when there is a problem.”
He explained that the upgrade process 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 in recent years, driven largely by mobile technology and agent banking models.
Initially licensed under unit, tier-one or tier-two frameworks, many of these operators were permitted to operate only within limited regions.
Despite these restrictions, digital banking platforms such as Kuda Bank, Opay, Moniepoint and Palmpay built user bases nationwide.
Their rapid expansion created a regulatory gap between their licence scope and their actual operational reality.
Concerned about the risks posed by this mismatch, the CBN introduced reforms to align licensing categories with the true scale of operations.
By upgrading these licences, the apex bank is now adjusting regulations to reflect how much these institutions have evolved in scope and scale.
The regulator also stressed that national FinTechs and MFBs must maintain a physical presence in key locations despite being digitally driven.
According to the CBN, physical branches are essential for dispute resolution and for serving informal sector customers who require face-to-face engagement.
Many of these firms operate extensive agent networks across rural and urban areas, playing a critical role in managing cash flows in communities underserved by traditional banks.
The CBN believes the wide reach of FinTechs can help tackle Nigeria’s high level of cash outside the banking system.
This, the regulator said, reflects its broader strategy to use FinTechs to deepen financial inclusion while maintaining effective regulatory control.
With the issuance of national licences, FinTechs and MFBs are now subject to stricter capital and compliance requirements.
National MFBs are required to meet a minimum capital base of N5 billion, up from N2 billion.
Under the current framework, Unit MFB Tier II requires N50 million; Tier I, N200 million; while State MFBs must maintain N1 billion.
Major players such as Opay, Moniepoint, Paga and Kuda Bank operate under these regulatory structures.
In 2024, the CBN imposed a N1 billion fine each on Moniepoint and Opay for non-compliance with Know-Your-Customer (KYC) standards, signalling stricter enforcement of the CBN’s Customer Due Diligence and KYC Regulations 2023.
The national licence upgrade reflects a broader regulatory shift to formalise digital finance operators and strengthen confidence in Nigeria’s financial system.
