CBN Upgrades OPay, Moniepoint, Kuda: What to Know

The Central Bank of Nigeria (CBN) has upgraded the operating licences of some fintech firms and microfinance banks (MFBs) to national status, allowing them to operate legally in all states in Nigeria.

The CBN’s Yemi Solaja, Director of the Other Financial Institutions Supervision Department, announced this at the CHBOs conference in Lagos. He said the upgrade is not automatic. Firms had to meet regulatory, compliance, and operational requirements before qualifying.

Solaja said many digital lenders and payment providers had already expanded beyond the limits of their original licences. The CBN is updating their authorisations to match their nationwide reach. Moniepoint Microfinance Bank, OPay, Kuda Bank, and other fintechs are included.

The CBN said the goal is tighter supervision of fast-growing fintechs while supporting financial inclusion.

Key things to know

1) They can operate nationwide.
The national licence removes previous regional limits.

2) CBN oversight becomes tighter.
The upgrade brings these firms fully under closer CBN monitoring nationwide.

3) Capital and compliance requirements are higher.
National MFBs must keep a minimum capital base of about ₦5 billion, plus stricter governance, risk, and reporting standards.

4) Physical presence is required.
They must set up branches or service centres in key locations.

5) Consumer protection should improve.
More oversight and physical outlets should improve dispute handling, reversals, and complaint resolution.

6) They are not commercial banks.
They are still fintechs/MFBs and can only offer services allowed under their licence categories.

7) Agent networks can expand faster.
Nationwide approval lets them scale agents across Nigeria, especially in underserved areas.

8) Financial inclusion gets a push.
It supports wider access to payments, savings, and credit for rural and informal workers.

9) Operators’ costs will rise.
Nationwide compliance teams, infrastructure, and outlets increase expenses.

10) Smaller fintechs may struggle.
Higher standards could trigger mergers or market consolidation.

11) Data protection and cybersecurity will face more scrutiny.
Scaling nationally increases regulatory focus on privacy and security.

12) Competition against traditional banks will increase.
Fintechs may win more retail payments and SME customers through wider agent reach.

13) Penalties for breaches are tougher.
Violations can lead to fines, restrictions, or licence withdrawal.

14) Transparency demands increase.
Expect more audits, disclosures, and performance reporting.

15) Investor confidence may rise.
National approval can improve trust and attract more investment.