The Central Bank of Nigeria (CBN) has explained its decision to upgrade the operating licences of major financial technology firms and microfinance banks, including Opay and Moniepoint, to national status, citing compliance with regulatory requirements and the nationwide scale of their operations.

The upgrade affects key players such as Moniepoint Microfinance Bank, Opay, Kuda Bank, Palmpay and Paga, whose rapid growth through mobile platforms and extensive agent networks has seen them outgrow their earlier regional licences.

Director of the Other Financial Institutions Supervision Department at the CBN, Mr Yemi Solaja, confirmed the development in Lagos during the annual conference of the Committee of Heads of Banks’ Operations. He noted that although the institutions were previously licensed on a regional basis, their services already cut across the country.

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

He stressed that the national licence framework places greater responsibility on the fintechs, particularly in terms of customer protection and physical presence. According to him, most of their customers operate within the informal sector and require accessible channels for complaint resolution.

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

Under the new status, the fintechs are required to meet higher capital thresholds, including a minimum capital base of N5 billion for national microfinance banks, and to maintain offices dedicated to dispute resolution. The CBN said the move is also aimed at strengthening financial inclusion while ensuring stability and accountability in the digital finance ecosystem.

The licence upgrade follows earlier enforcement actions by the apex bank, including penalties imposed in 2024 on Moniepoint and Opay, which were each fined N1 billion for non-compliance with Know Your Customer (KYC) regulations. The sanctions, the CBN noted, underscored its resolve to enforce stricter standards in Nigeria’s fast-growing digital financial services sector.

The CBN said the reforms reflect its broader efforts to align regulation with innovation, while safeguarding consumers and maintaining confidence in the financial system.

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Tech start-ups in Nigeria, South Africa, Kenya, Egypt and others have over the past seven years raised a total of $19.7billion for scaling up.

Nigeria is home to close one million tech startups in the financial technology (fintech), mobility, education, health and other spaces and they have seen significant funding, especially in fintech, with major players such as Flutterwave, Opay, Moniepoint, PalmPay, and Paystack securing hundreds of millions, while others like Moove (mobility fintech) and Andela (talent tech) also raised substantial rounds, demonstrating a booming ecosystem attracting both early-stage and growth-stage investment across sectors such as finance, logistics, and healthtech.

According to data compiled over the weekend, Africa’s startups raised $1.4billion in 2019, $1.1billion in 2020, marking a 21.43 per cent decline and $4.4billion in 2021 marking a significant increase of 300 per cent.

The data sourced from Africa: The Big Deal, a platform for database and newsletter, showed that 2022 posted the highest cash raise hitting $4.6billion, marginal 4.55 per cent. In 2023, the ecosystem recorded a decline of approximately 34.78 per cent by raising $3billion and a further decline of 26.67 per cent to $2.2billion in 2024.

And as of December 8, 2025, the ecosystem has raised $3billion which will likely go up surpassing not only 2024 but also 2023 numbers.

Leaders in fintech and payments space include the unicorn, Flutterwave, a leader in cross-border payments, valued at over $3 billion as of 2024.

Another is OPay, a neobank/payments platform that raised over $570million, including a $400million Series C. Moniepoint (formerly Teamapt) is also a major player in digital banking, achieved unicorn status after a $110million Series C in late 2024.

Among the top fintechs is PalmPay which offers digital payments for consumers and merchants while Paystack, acquired by Stripe, revolutionized online payments and received earlier funding from Visa, Tencent, and Y Combinator.

In the country’s mobility and logistics space, Moove provides revenue-based vehicle financing for mobility entrepreneurs, embedding tech for alternative credit scoring while Kobo360 is a logistics and freight tech company.

Other notable startups include Andela which connects global companies with African tech talent; Helium Health, a digital infrastructure for healthcare in Africa; Remedial Health with focus on pharmacy supply chain management and CowryWise that offers personal finance and wealth management tools.

The report noted: “The ecosystem has performed better in 2025 than in 2024 on start-up fundraising… After two years of YoY decline (-35per cent YoY in 2023 and another -25per cent YoY in 2024), seeing positive double-digit growth (+33per cent YoY so far) is a real breath of fresh air.

“But the fact that start-ups on the continent have now raised more in 2025 than not only in 2024, but also in 2023, feels extra special. It was ‘nearly $3billon’ in 2023; it will be ‘over $3billion’ in 2025 — and the year isn’t even over yet!”

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Olukoyede, represented by Chief of Staff Commander Michael Nzekwe, said strict adherence to regulations—including robust Know-Your-Customer (KYC) procedures—was essential for safeguarding Nigeria’s financial ecosystem. EFCC investigators also warned about insider abuse, emphasising the need for tighter controls around hiring and internal system access.

Wen said Opay prioritises regulatory compliance, customer satisfaction and revenue growth, adding that compliance remains non-negotiable for the company.

Nigeria’s fintech sector has come under heightened regulatory pressure in recent months. Several major fintechs, including Opay and Moniepoint, were fined by the Central Bank of Nigeria for compliance failures. Earlier this year, the CBN temporarily halted new customer onboarding for multiple fintechs due to concerns over money-laundering risks and illicit foreign-exchange transactions.

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By Maymunah Abdulwahab

Recent core banking upgrades across Nigerian Deposit Money Banks (DMBs) have sparked operational disruptions, leaving customers frustrated and unable to complete basic transactions. Despite reassurances, prolonged IT glitches have hindered account access, disrupted transfers, and eroded customer trust.

Given the centrality of core banking systems to bank operations, these disruptions underscore a need for effective strategies to reduce service interruptions during important transitions. Banking systems manage fundamental operations, from account balances to transactions, making them the backbone of financial institutions.

With rapid advancements in digital finance, Nigerian banks have embarked on system migrations to enhance efficiency, integrate new technologies, and strengthen security. However, upgrading these systems can be challenging and risky, as evidenced by the issues currently impacting customers.

Many banks have faced extended disruptions, affecting everything from daily customer transactions to business operations. For smaller enterprises, which rely heavily on dependable banking systems, even minor interruptions can have significant economic impacts.

To minimize customer disruption, banks could implement a staged migration.

Rather than transitioning all data and operations at once, banks can upgrade their systems in phases—starting with non-critical operations and gradually moving to critical ones. This approach would reduce the likelihood of complete service outages and give bank staff time to adapt to the new system progressively.

Banks could also divide their customer base by region or account type, implementing upgrades in cycles. This would limit downtime to a subset of customers at any one time, reducing operational load. Performing upgrades during off-peak hours, such as from 10 p.m. to 6 a.m., when transaction volumes are lower, could minimize disruptions to daytime operations.

Clear communication is essential here; banks must inform customers of expected downtimes in advance, using channels such as email, SMS, or app notifications, so they can plan around potential service outages. Customer support is crucial during system upgrades. Banks should reinforce their customer service departments to provide faster response times and robust troubleshooting.

Proactive updates through mobile apps, social media, and customer hotlines can keep customers informed about service status and any disruptions. Additionally, banks could offer alternative service channels, such as ATMs, mobile, and SMS-based transactions, to ensure access to critical services even if core systems are temporarily down.

Banks could enhance system resilience by deploying failover mechanisms and secondary systems to take over in case of primary system failures. This approach helps maintain continuity during upgrades, enabling essential transactions like fund transfers and balance checks to proceed without interruption.

Additionally, cloud-based storage solutions for critical banking data provide backup, reducing the risk of data loss during transitions. FinTech companies, such as OPay and PalmPay, have gained traction in Nigeria, especially when banks face technical issues. Banks could establish partnerships with these providers to offer temporary support for transactions during upgrade periods.

Customers could be directed to use these platforms for certain types of transactions, with the bank compensating any additional fees. Such partnerships would not only provide temporary relief during downtimes but also foster long-term innovation and service delivery improvements.

Core banking upgrades are essential for keeping pace with evolving technology and enhancing customer service. By adopting a phased approach, scheduling after-hours upgrades, and strengthening customer support, banks can better manage these transitions and minimize disruptions for customers.

Maymunah U. Abdulwahab is an intern at PRNigeria and a student of Ahmadu Bello University, Zaria. She can be reached via maymunahu92@gmail.com.

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The Central Bank of Nigeria (CBN) has lifted its ban on several prominent fintech companies, including OPay, Moniepoint, Kuda, Palmpay, and Paga, allowing them to resume onboarding new customers. This development comes five weeks after the apex bank halted the fintechs’ onboarding activities over concerns of illicit foreign exchange transactions.

While the CBN has yet to issue an official statement, both OPay and Kuda have confirmed the news in separate communications to their customers on Monday.

“We are thrilled to announce that the Central Bank of Nigeria has given OPay the thumbs up to resume onboarding new users. This milestone highlights our dedication to following the rules, keeping your information safe and secure, and preventing any shady activities,” stated OPay.

The company reassured its customers of its commitment to stringent Know Your Customer (KYC) verification processes, urging all users to comply fully with the required verification steps.Similarly, Kuda took to social media to inform its customers, writing, “As you probably already know, we’ve been working with the CBN to meet recent regulatory requirements by putting more account controls in place.

“Based on the work we’ve done, we’ll resume signing up new customers this week. Please note that you’ll need your BVN, NIN, and your proof of address (followed by address verification) to open a Tier 3 account.”

The initial CBN directive, issued on April 29, came shortly after 1,146 accounts were blocked for peer-to-peer (P2P) cryptocurrency trading.

The fintech companies argued that the majority of the implicated accounts belonged to commercial banks, not fintech platforms.

The National Security Adviser (NSA) had also classified cryptocurrency as a security concern, pressing for enhanced KYC and fraud prevention measures to curb crypto transactions through fintech channels.

On May 20, the CBN provided the fintechs with several conditions to lift the onboarding freeze, including blocking P2P crypto transfers, mandating physical address verification for all account tiers, and updating facial verification for customers.

With these measures now in place, the fintech companies are poised to resume their operations, reinforcing their commitment to regulatory compliance and customer security.

The post CBN Lifts Ban on Leading Nigerian Fintechs appeared first on Tech Digest News.

The Central Bank of Nigeria (CBN) says mobile money operators including fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint will resume the enrolment of new customers “in another couple of months”.

CBN Governor, Olayemi Cardoso, stated this on Tuesday at the 295th Monetary Policy Committee (MPC) of the apex bank in Abuja when the MPC jacked up interest rate from 24.75 per cent to 26. 25 per cent.

The CBN chief said the apex bank has engaged many of the players on the need to strengthen their operations.

Cardoso said to block money laundering and illicit flows, the apex bank brought up “remedial measures that will help that sector to tighten up on onboarding and even existing clientele base”.

“I am confident that as time goes on, and hopefully in another couple of months, all these will be something of the past and then you will see that sector going back into what they’ve been known to do before, but certainly with a very stronger regulatory framework,” he said.

In April, the apex bank stopped fintech companies from onboarding new customers, a move that has been seen as a clampdown on the financial sub-sector by the Cardoso-led CBN.

When asked why the apex bank took the decision, the CBN chief said reports that the CBN has decided to clamp down on fintech firms are “furthest from the truth”.

He said “The fintechs have not been singled out for any exceptional kind of treatment”, adding that the CBN remained proud of the exploits of fintech firms in the last number of years and the apex bank would continue to support and strengthen them.

“However, regulation is very critical in a sector that seems to have grown so incredibly rapidly,” Cardoso said, citing illicit flows within the sub-sector.

“More recently, we had course to take a deep dive look at the whole issue of illicit flows and money laundering particularly within the non-heavy regulated banking system and we all know some of the issues that came out with cryptos and some of the messages we put out after that, which of course, gave us some course to know that there is the need for heightened surveillance.”

He said the apex bank has had a major handshake with security agencies to identify the places to tighten regulations and surveillance in the sub-sector.

Cardoso said, “For that reason, we were concerned with respect to how we saw the issue of anti-money laundering and illicit flows as they made their way within the various sub-sectors of the financial industry and we felt there was a need for us to take a breather and work with different players to strengthen regulations, not by any means to throw them out of business.

“Let me re-emphasise that as at this point in time, we have not revoked the licenses of any of the fintech organisations.”

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The Central Bank of Nigeria (CBN) has ordered four fintech companies to suspend them from opening new accounts and accepting new customers over allegations that they were being used to funnel cryptocurrency and manipulate the naira’s value.

The affected fintech firms are OPay, Palmpay, Kuda Bank, and Moniepoint.

According to reports, representatives from two of the companies acknowledged that the CBN’s directive is connected to these allegations.

However, they expressed concerns that the directive might be misdirected, highlighting that the majority of the implicated accounts are held by commercial banks rather than fintech platforms.

Earlier, it was reported that the Economic and Financial Crimes Commission (EFCC) had obtained a court order to freeze at least 1,146 bank accounts owned by individuals and companies allegedly involved in illegal foreign exchange transactions.

Justice Emeka Nwite, in a ruling on the ex-parte motion presented by the anti-graft agency’s lawyer, Ekele Iheanacho, granted the commission’s request to conclude the investigation within 90 days.

Although the verdict was issued on April 24, its certified true copy was provided on Monday.

The EFCC is also investigating other offences, including money laundering and terrorism financing.

An examination of the list of affected accounts reveals that the majority are deposit money bank accounts.

The EFCC stated in its request for the account freeze that its preliminary investigation indicated the accounts were linked to individuals exploiting virtual cryptocurrency exchange platforms to manipulate the Naira’s value illegally and launder proceeds from unlawful activities.

It cited the necessity to preserve the funds in the identified accounts pending the investigation’s conclusion and potential prosecution.

Despite a court order citing most of the accounts involved in alleged illegal forex trading as commercial bank accounts, the banks have not been instructed to halt new customer onboarding.

The post Why CBN Direct Moniepoint, Opay, Kuda, Others To Stop Registering New Customers appeared first on Tech Digest News.

In the evolving digital landscape of Nigeria, a recent statement by the Registrar General of the Corporate Affairs Commission (CAC), Hussaini Magaji, has sparked a significant conversation about the regulatory framework governing content creators and their tax obligations. The call for social media influencers, Instagram users, and TikTok users with large followings to register their businesses under the Company and Allied Matters Act (CAMA) 2020, reflects an increasing interest from regulatory bodies in the economic activities generated through digital platforms.

However, this raises critical questions about the capacity of the CAC to enforce tax compliance, its understanding of its role vis-a-vis the digital sector, and the broader implications for digital entrepreneurs in Nigeria.

Firstly, it is essential to clarify the legal boundaries within which the CAC operates. The CAMA 2020 does mandate the registration of businesses operating within Nigeria; however, its jurisdiction does not extend to enforcing tax compliance or collection.

If CAC understands the overall content creation space, it will clearly understand it cannot force a content creator who is work for hire to register a business name or sole proprietorship – any coercive act is unconstitutional. Infact, they do not need to register as their income can fall under personal income. Registering as a business name does not guarantee tax will be paid [we know that already].

Additionally, taxation, especially in the context discussed by Magaji, falls within the purview of the Federal Inland Revenue Service (FIRS) and state governments for personal income taxes. Precisely, the FIRS has articulated that its mandate does not include taxing individual content creators directly, as highlighted in an article by The Cable, where it was stated that there are no plans by the FIRS to tax content creators directly. The FIRS maintains that it focuses on corporate entities and businesses with significant profit margins, leaving individual creators largely within the taxation oversight of state governments.

The distinction made by the FIRS underscores a critical aspect of Nigeria’s tax system, emphasizing the decentralized nature of personal income tax administration. This clarification not only alleviates immediate concerns among content creators about potential new tax burdens but also illustrates the nuanced understanding required to navigate the digital economy’s regulatory landscape. FIRS stance is both the legal and pragmatic position to take, considering Nigeria’s current realities [perhaps CAC can learn from them].

Although, in some developed digital economies, where government has invested in growing innovation and with increased digital economy activities such as Singapore, if you are involved in repeated or habitual blogging-related activities result in an annual net business income of more than $6,000, you will have to declare this as self-employed income, you do not have to register as a business by compulsion. Nigeria in the future can learn from this, but for now, FIRS position is pragmatic and viable.

Regarding Opay’s role in this unfolding scenario, the company’s engagement with the CAC, aiming to regularize 300,000 agents and merchants, is a monumental task that underscores the fintech giant’s commitment to formalizing the informal sector. However, the communication and government relations strategy surrounding these efforts needs critique.

The portrayal of Opay’s involvement in facilitating business registration and potentially expanding the tax net could inadvertently align the brand with an “anti-people” sentiment, especially if perceived as enforcing unpopular regulatory measures without adequate public sensitization or dialogue.

To mitigate such perceptions, Opay, and indeed any fintech or digital platform operating in similar capacities, must prioritize transparent, empathetic communication that highlights the mutual benefits of compliance and registration.

The rule is: “Have your GR comms materials ready for release before and after each visit, do not leave it in the hands of government and media [especially some Nigerian media outlets that tends to sensationalize headlines]. Not only does this approach foster a more cooperative relationship between digital platforms and their users, but it also positions these companies as partners in progress, working alongside government agencies to enhance economic inclusiveness and stability.

In addressing the complexities of digital economy regulation, the role of the 14-member National Council for Digital Innovation and Entrepreneurship (NCDIE) becomes paramount. Inaugurated by President Muhammadu Buhari under the Startup Act, with the Vice President serving as its head, the NCDIE is strategically positioned to influence these matters significantly.

The council consists of a diverse group of stakeholders, including representatives from federal ministries such as Finance, Digital Economy, and Education, as well as members from the private sector, academia, and the startup ecosystem. This composition ensures a holistic approach to digital innovation and entrepreneurship, enabling the council to provide comprehensive guidance and support on regulatory issues that impact digital content creators and the broader tech community.

The NCDIE’s involvement is crucial in ensuring that regulations like those proposed by the CAC and tax considerations by the FIRS are pro-innovation and align with the overarching goals of fostering a supportive environment for digital innovation and entrepreneurship in Nigeria. The NCDIE must wake up the sleeping giant in her!

Timi Olagunju has 12+ years experience in the intersection of technology, law, and policy. He is a Partner Groundswell and Associate Partner, The Timeless Law Practice. He tweets @timithelaw

The post Can CAC Tax Content Creators? appeared first on Tech Digest News.

The Corporate Affairs Commission has urged social media content creators, Instagram users, and TikTok users with large followers to register their businesses with the commission in accordance with the Company and Allied Matters Act 2020.

This is coming amidst alleged plans by the Federal Inland Revenue Services to onboard media content and influencers into its tax system.

The Registrar General, CAC, Hussaini Magaji, made the call recently, when he was paid a courtesy visit by the Managing Director, Opay, Dauda Gotring, and his team in Abuja.

The visit from the Opay team was to ensure the regularisation of 300,000 agents and merchants with the commission.

This will expand the tax net, encourage businesses, and create more jobs for Nigerians.

Last week, the commission began the registration of two million small businesses in partnership with Moniepoint, a fintech company.

The CAC boss stated that social media and content creators are generating a lot of money without paying any form of tax to the Federal Government.

Magaji said, “Ignorance of the law is not an excuse. It is stated in the Company and Allied Matters 2020 that for any business to take place in Nigeria, whether you are doing business with your name or another name, you must surrender your business for registration.

” If you are a content creator on the internet and you have a large followership and you are gaining or making money from it, you must register and that’s the provision of the law.

“And we are all out to enforce the provision of the law with its penalties.”

He added that the commission will soon begin compliance checks to ensure these businesses start paying their taxes to the government.

He added, “This cannot go on, these groups of people are under mandate to register as a business considering the amount they make from the content creation. The government is all out to ensure every business in Nigeria, no matter what or how, is registered with the CAC.

“The commission is registering another batch of 300,000 business names from Opay.”

The CAC boss said the initiative is part of his target to register 20 million businesses in 2024 and 50 million jobs target for Nigerian youths.

On his part, the Opay MD noted that the idea behind Opay operations is to deliver banking services to the unbanked persons in the country.

“Opay is ready to partner with CAC to ensure these groups of people have their businesses registered, with their consent though,” he said.

Gotring said the Opay organisation is working to ensure that all companies no matter how little, as long as you operate as a business you should be registered with the CAC.

He added that since Opay handles, “these accounts they are working on sensitising the owners of the accounts so they can be registered with CAC.”

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The Nigeria Data Protection Commission (NDPC) has initiated an investigation into Fintech firm OPay, social media giant Meta, and courier company DHL over allegations of a data breach.Sources familiar with the matter revealed that the NDPC has summoned these companies following complaints lodged against them, accusing them of violating the data rights of individuals.

Under the Nigeria Data Protection Act, these three companies are considered data controllers and are obligated to adhere to specific data protection measures while handling the personal data of Nigerians.

If found guilty, each company may face penalties amounting to 2% of their gross revenue, as outlined in the Data Protection Act.

According to an anonymous source who shared details with TechDigest, the allegations against each company pertain to data breaches:Meta is accused of engaging in behavioral advertising without obtaining explicit consent from data subjects, potentially affecting around 40 million Facebook accounts in Nigeria.

This issue could have significant implications for Nigeria’s digital economy.DHL is under investigation for allegedly breaching lawful data protection principles and standards. A Civil Society Organization dedicated to safeguarding citizens’ privacy rights claims that DHL’s data processing falls short of the confidentiality standards mandated by the Nigeria Data Protection Act.

OPay may face inquiries regarding allegations of opening bank accounts for data subjects without their consent, a serious breach of data privacy rights for an estimated 40 million data subjects. Each of these data controllers has been served with a Notice of Investigation by the Nigeria Data Protection Commission.

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