BUSINESS
CBN Elevates Leading Fintechs and Microfinance Banks to National Status, Closing Regulatory Gaps Amid Rapid Digital Expansion
…as Beneficiaries include, Opay, Moniepoint, Paga, Kuda Bank, others
In a decisive move to modernize Nigeria’s financial regulatory framework, the Central Bank of Nigeria (CBN) has upgraded the licences of selected fintech firms and microfinance banks (MFBs) to national status, reflecting the institutions’ expanding reach across the country. Among the beneficiaries are Opay, Moniepoint, Paga, Kuda Bank, and other tech-driven MFBs.
The announcement was made by Mr. 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) held in Lagos. The move is designed to align licensing structures with the actual operational footprint of fintechs and MFBs, ensuring robust regulatory oversight as these institutions now serve customers nationwide.
Solaja highlighted that the CBN had observed a growing mismatch between the limited licences held by some fintechs and their actual nationwide presence.
“The upgrade is not automatic,” he clarified, stressing that national licences are granted only after institutions meet key regulatory benchmarks.
Driven by mobile technology and agent banking models, fintechs and tech-driven MFBs have rapidly expanded across Nigeria. Initially licensed under unit, tier-one, or tier-two frameworks, many operators were restricted to serving limited regions.
However, digital platforms such as Kuda Bank, Opay, Moniepoint, Palmpay, and others built nationwide user bases, exposing a regulatory gap between licence scope and operational reality.
To bridge this gap, the CBN introduced reforms to ensure that the licensing structure reflects the institutions’ true scale, strengthening regulatory compliance and consumer protection.
Dr. Emmanuel Ojo, a financial policy analyst, hailed the development as a positive step.
“These fintechs are now serving millions of Nigerians, many of whom operate in the informal economy. Upgrading licences to national status ensures these platforms are accountable and regulated properly. It also strengthens consumer confidence,” he said.
Mrs. Adaeze Okonkwo, a banking compliance expert, described the move as a necessary regulatory catch-up, emphasizing that it would close gaps in the financial system.
“The CBN is aligning its regulatory framework with reality. This upgrade forces fintechs to meet higher capital and compliance requirements, which is crucial for long-term stability,” she noted.
With the issuance of national licences, fintechs and MFBs are now subject to stricter capital requirements and compliance standards. National MFBs must maintain a capital base of N5 billion, up from ₦2 billion. Other regulatory benchmarks include: Unit MFB Tier II: ₦50 million; Unit MFB Tier I: ₦200 million; State MFB: ₦1 billion.
This landmark regulatory move not only formalizes the operational realities of Nigeria’s fintech ecosystem but also sets the stage for a more resilient, accountable, and financially inclusive system that can meet the needs of millions of Nigerians across urban and rural communities.