CBN Grants National Operating Status to Major Fintechs and Microfinance Banks
The Central Bank of Nigeria (CBN) has upgraded the operating licences of several leading fintech companies and microfinance banks, including Opay, Moniepoint, Kuda, and PalmPay, granting them full national operating status.
The development was disclosed by Yemi Solaja, Director of the Other Financial Institutions Supervision Department at the CBN, during a banking conference held in Lagos. According to Solaja, the decision reflects the reality that many of these institutions now operate extensively across Nigeria, far beyond the geographic limits of their original licences.
CBN Aligns Licences With Actual Fintech Operations
For years, many digital banks and fintech platforms were licensed as unit, state, or tiered operators, restricting them to specific regions. However, companies such as Opay, Moniepoint, and Kuda rapidly expanded nationwide through mobile apps, agent networks, and digital payment infrastructure, serving millions of customers across all states.
The CBN acknowledged a growing mismatch between the scope of these licences and the actual scale of operations. By upgrading them to national status, the regulator aims to ensure that the legal framework governing these institutions accurately reflects their footprint in Nigeria’s financial system.
According to the CBN, the change also improves consumer protection, especially in a digital-first environment where customers may not interact with physical bank branches and need clarity on where to escalate complaints and resolve disputes.
Stricter Oversight and Higher Compliance Requirements
With national licences, the affected fintechs and microfinance banks will now be subject to tighter regulatory supervision, including:
- Higher capital requirements, particularly for national microfinance banks
- Enhanced compliance obligations
- Stronger internal controls, especially around Know-Your-Customer (KYC) and anti-money laundering (AML) frameworks
National operators are expected to meet significantly higher financial and governance standards than unit or state-level institutions.
Impact on Financial Inclusion and Agent Banking
Fintechs and agent banking networks play a critical role in financial inclusion, particularly in rural and underserved communities where traditional bank branches are scarce. The CBN recognises these platforms as key drivers of cashless payments and digital financial access, provided they operate within robust regulatory boundaries.
By granting national licences, the regulator is signalling confidence in the sector while reinforcing the need for accountability as these platforms handle an increasing share of Nigeria’s payment flows.
Higher Expectations for Customer Service and Infrastructure
The licence upgrades also come with new expectations. Nationally licensed fintechs and microfinance banks will be required to:
- Maintain physical touchpoints in strategic locations
- Improve customer service and dispute resolution systems
- Strengthen risk management and compliance teams
The CBN expects these institutions to match their nationwide reach with stronger operational discipline and consumer safeguards.
Conclusion
The CBN’s decision to upgrade the licences of Opay, Moniepoint, Kuda, and other fintechs marks a significant shift in Nigeria’s digital banking landscape. By formally recognising their national scale, the regulator is both legitimising their growth and placing them under stricter oversight.
As fintechs continue to reshape how Nigerians access financial services, the move underscores the CBN’s effort to balance innovation, financial inclusion, and systemic stability.
