The Central Bank of Nigeria (CBN) has upgraded the licences of selected FinTechs and Microfinance Banks (MFBs) with nationwide operations to national status.
The disclosure was made by Mr. Yemi Solaja, Director of the Other Financial Institutions Supervision Department (OFISD) at the CBN, during the just concluded annual conference of the Committee of Heads of Banks’ Operations (CHBOs) in Lagos.
This development is aimed at aligning licensing structures with the actual operational footprint of FinTechs and MFBs whose services now span across Nigeria, ensuring proper regulatory oversight.
At the CHBOs conference, Solaja urged for collaborations between Commercial Banks and Fintechs to address the persistence of cash outside formal banking channels, and the adoption of “Digital-First” banking operations.
According to Mr. Solaja, the CBN observed a growing mismatch between the limited licences held by some FinTechs and their actual nationwide presence.
“Institutions like Moniepoint MFB, Opay, Kuda Bank and others have already been upgraded.”
“In reality, their activities are now all over the country.”
“Most of their customers are informal people. They need to know where to report to when there is a problem.”
He explained that the upgrade process is not automatic, with national licences granted only after institutions meet key regulatory benchmarks.
FinTechs and tech-driven MFBs have rapidly expanded operations in Nigeria, driven by mobile technology and agent banking models.
Initially licensed under unit, tier-one, or tier-two frameworks, many of these operators were only permitted to serve limited regions.
By upgrading these licences, the CBN is now catching up with how much these institutions have evolved in scope and scale.
The regulator stressed that national FinTechs and MFBs must maintain a physical presence in key areas despite being digitally driven.
This reflects the apex bank’s strategy to use FinTechs as tools to deepen financial inclusion while ensuring regulatory control.
With national licences now issued, FinTechs and MFBs are subject to stricter capital requirements and compliance standards.
The national licence upgrade reflects a broader regulatory shift to formalize digital finance players and enhance trust in Nigeria’s financial system.
The national licence upgrade reflects a broader regulatory shift to formalize digital finance players and enhance trust in Nigeria’s financial system.