CBN Upgrades Licences of OPay, Moniepoint, Kuda and Other FinTechs to National Status
Opay, Moniepoint, Kuda and PalmPay Gain National Licences as CBN Tightens Oversight
The Central Bank of Nigeria (CBN) has formally upgraded the operating licences of several leading financial technology (FinTech) companies and microfinance banks (MFBs) to national status, aligning regulatory authorisation with these institutions’ widespread operational reach across Nigeria. The announcement was made by Yemi Solaja, Director of the Other Financial Institutions Supervision Department, during the annual Committee of Heads of Banks’ Operations (CHBOs) conference held in Lagos on 26 January 2026.
The move recognises that digital finance platforms originally licensed for limited regional operations have expanded their services nationwide, especially through mobile technology and agent networks. Upgrading their licences ensures that their legal status reflects their current footprint and subjects them to appropriate regulatory oversight as they serve millions of customers across all 36 states and the Federal Capital Territory.
Matching Regulation with Operational Scale
The licence upgrade responds to a regulatory mismatch in which companies had effectively built national operations but were still formally restricted under tiered or regional licences. Under the new framework, major participants including OPay, Moniepoint Microfinance Bank, Kuda Bank, PalmPay and Paga now hold national authorisation, allowing them to operate legally across the entire federation.
Solaja emphasised that the upgrade process is not automatic: institutions must meet strict regulatory and compliance benchmarks before receiving national status. This includes demonstrating robust operational, supervisory and governance practices appropriate for nationwide operations.
Strengthening Regulatory Oversight and Consumer Protection
With national licences come enhanced regulatory responsibilities and compliance requirements. The CBN has introduced stricter capital thresholds, governance standards and reporting obligations to support financial system stability. For example, national MFBs must now maintain a minimum paid-up capital of approximately ₦5 billion, up from ₦2 billion under the previous regime, and establish physical branches or service centres in key locations. These in-person touchpoints are intended to improve customer service, dispute resolution and consumer protection, especially for informal sector participants who may not rely solely on digital channels.
The regulator’s decision also reinforces its broader objectives of financial inclusion and formalisation of economic activities, helping to close gaps in oversight where digital platforms serve customers beyond the reach of traditional banks. The upgraded licensing structure equips authorities with clearer mechanisms to monitor risk, protect customer funds and ensure consistency with systemic standards as the digital finance segment continues to grow in scale and complexity.
Implications for Nigeria’s Digital Finance Ecosystem
The licence upgrades signal a significant regulatory milestone in the evolution of Nigeria’s digital banking and payments space. By aligning legal status with real-world operations, the CBN is acknowledging the pivotal role that FinTechs and MFBs play in expanding financial access particularly in underbanked and rural communities where mobile adoption and agent networks have already taken root.
Furthermore, the requirement for physical presence alongside digital services reflects a hybrid model of financial engagement designed to reassure customers and facilitate resolution of issues that may arise offline. These reforms are expected to strengthen market confidence, encourage deeper institutional oversight, and support sustainable growth in Nigeria’s rapidly expanding digital finance sector.
As these institutions adapt to their enhanced regulatory obligations, the upgraded licensing framework may also influence competitive dynamics, capital requirements and strategic priorities as FinTechs and MFBs expand service offerings while maintaining compliance within the formal banking ecosystem.
