Regulatory Shift to Formalise Nationwide Operations
Lagos, Nigeria – The Central Bank of Nigeria (CBN) has formally upgraded the operating licences of several major financial technology companies and microfinance banks to national status, empowering them to operate legally across all 36 states and the Federal Capital Territory. The move reflects the rapid expansion of digital financial services and aims to align regulatory frameworks with real-world market footprints.
The announcement was made today by Yemi Solaja, Director of the Other Financial Institutions Supervision Department at the CBN, during the annual Committee of Heads of Banks’ Operations (CHBOs) conference in Lagos.
Major Winners: Nigeria’s FinTech and MFB Innovators
Under the licence upgrade, several industry leaders now hold national operating licences, including:
Opay – Mobile payments and financial services
Moniepoint Microfinance Bank – Business and personal financial services
Kuda Bank – Digital-first banking platform
Palmpay – Mobile money and payment ecosystem
Paga – Payment and money transfer solutions
These companies had organically expanded nationwide through mobile technologies and agent networks, outgrowing their former regional licences.
Closing the Regulatory Gap
CBN’s regulatory review found a growing mismatch between the licences held by digital operators and their actual breadth of operations — many institutions were effectively functioning nationwide despite limited licence categories. The upgrade seeks to bridge this gap, ensuring that legal authorisation matches commercial reality.
Solaja noted that the upgrade is not automatic; firms must satisfy strict regulatory standards in areas such as capital adequacy, governance, risk management and compliance before qualifying.
What the National Licence Means
The transition to national licence status brings enhanced regulatory expectations:
Stricter Capital and Compliance Standards
Microfinance banks now require a minimum capital base of ₦5 billion, up from ₦2 billion for lower tiers.
Firms must adhere to robust compliance and reporting frameworks to protect customers and financial stability.
Physical Presence and Customer Support
Even digital-first operators will need physical service points in strategic locations to support customers, particularly those in the informal sector who may prefer in-person assistance.
Boosting Financial Inclusion and Consumer Confidence
According to the CBN, aligning licences with operational reach enhances consumer protection and accountability. Clear regulatory oversight is essential as millions of Nigerians increasingly rely on digital finance for everyday transactions.
Experts believe the move will:
Deepen financial inclusion by legitimising and supervising platforms serving underserved segments.
Strengthen trust and stability in the fintech ecosystem.
Encourage stronger collaboration between traditional banks and fintechs to reduce cash outside the formal banking system.
Dr. Emmanuel Ojo, a financial policy analyst, described the upgrade as a “necessary regulatory catch-up” that supports sustainable sector growth and increased consumer protection.
A Strategic Regulatory Calibration
The CBN’s licence upgrades come amid broader efforts to modernise Nigeria’s financial sector and improve oversight in the face of digital transformation. As fintech platforms continue to reshape financial access and usage, regulatory bodies are responding with frameworks designed to balance innovation with prudential safeguards.