Why CBN upgrades Opay, Moniepoint, Palmpay, Others to National Licenses
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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