Amanze Chinonye
The Central Bank of Nigeria (CBN) has approved the upgrade of operating licences held by several major financial technology companies and microfinance banks, formally granting them nationwide operating status, Prime Business Africa reports.
The disclosure was made by Yemi Solaja, Director of the Other Financial Institutions Supervision Department at the CBN, at the annual Committee of Heads of Banks’ Operations (CHBOs) conference in Lagos.
Solaja explained that the approvals followed a regulatory assessment of fintech operators whose business activities and agent networks had expanded across the country, outgrowing the geographic limits of their original licences. He emphasised that the transition to national status was conditional, noting that only institutions that satisfied defined regulatory, operational and governance standards were approved.
Join our WhatsApp ChannelAmong the institutions upgraded are Moniepoint Microfinance Bank, Opay and Kuda Bank, alongside other digital finance operators, all of which are now legally authorised to provide services across Nigeria’s 36 states and the Federal Capital Territory.
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According to the apex bank, the licence review was undertaken to correct regulatory inconsistencies created by the rapid growth of digital financial services and to ensure that institutions operating at national scale are subject to commensurate levels of supervision.
Regulatory focus on oversight and access
The CBN said the move is expected to improve oversight of fintech firms that play a significant role in Nigeria’s payments and agency banking ecosystem, while also reinforcing consumer protection mechanisms.
With national status, the affected institutions will be required to maintain physical service locations in strategic areas, despite their largely digital business models, to enhance customer support and facilitate dispute resolution, particularly for users in the informal sector.
The regulator added that the development supports its ongoing efforts to promote financial inclusion and deepen the cashless economy by strengthening the framework governing digital payment platforms.
Stricter standards introduced
As part of the new licensing framework, national microfinance banks will now operate under higher capital thresholds, with minimum capital requirements raised to approximately ₦5 billion, compared with ₦2 billion under the previous structure.
In addition, fintechs granted national licences will be subject to enhanced compliance, reporting and risk-management obligations, aimed at safeguarding customers and preserving stability within the financial system.
The CBN said it would continue to review the activities of digital finance operators to ensure that innovation in the sector progresses in line with regulatory expectations and the broader interests of the economy.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
