CBN grants national licences to Moniepoint, Opay, Kuda Bank, Palmpay and Paga, allowing full nationwide operations under stricter rules

The Central Bank of Nigeria (CBN) has granted national operating licences to several fast-growing fintech firms and microfinance banks, formally allowing them to expand services across the country.

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Institutions upgraded include Moniepoint Microfinance Bank, Opay, Kuda Bank, Palmpay, and Paga, all of which have built strong nationwide footprints through digital platforms and extensive agent networks despite previously operating under regional licences.

The development was confirmed in Lagos by the Director of the Other Financial Institutions Supervision Department at the CBN, Mr Yemi Solaja, during the annual conference of the Committee of Heads of Banks’ Operations.

According to Solaja, the licence upgrade reflects existing realities on the ground.

“Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide,” he said.

He stressed that while technology has driven the rapid expansion of fintechs, physical offices remain essential, particularly for handling customer complaints and dispute resolution.

“Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise,” Solaja added.

Under the new national status, the fintechs will operate under stricter regulatory requirements, including higher capital thresholds.

National microfinance banks are required to maintain a minimum capital base of ₦5 billion and establish offices dedicated to resolving customer disputes.

The CBN said the move strikes a balance between promoting financial inclusion and ensuring stronger regulatory oversight, bringing fast-growing digital financial institutions in line with standards expected of traditional banks.

The licence upgrades also come amid tighter regulatory enforcement.

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In 2024, Moniepoint and Opay were fined ₦1 billion each for breaches related to Know-Your-Customer (KYC) requirements, underscoring the apex bank’s commitment to strengthening compliance within Nigeria’s digital finance ecosystem.