What to know as CBN upgrades OPay, Moniepoint, Kuda, others

The Central Bank of Nigeria (CBN) has upgraded the operating licences of several leading financial technology firms and microfinance banks (MFBs) to national status, allowing them to operate fully across all States of the Federation.

 Director of the Other Financial Institutions Supervision Department at the CBN, Yemi Solaja, announced this during the annual Committee of Heads of Banks’ Operations (CHBOs) conference held in Lagos.

Solaja explained that the licence upgrade is not automatic, noting that affected institutions were required to meet specific regulatory, compliance and operational benchmarks before qualifying.

He said many digital lenders and payment service providers had expanded their operations beyond the limits of their original licences, prompting the regulator to formally update their authorisations to reflect their nationwide reach.

Under the revised framework, major players including Moniepoint Microfinance Bank, OPay, Kuda Bank and other fintechs now hold national licences, granting them approval to operate across Nigeria rather than within restricted regions.

The CBN said the move is aimed at strengthening regulatory oversight of fast-growing fintech operators while sustaining momentum in the expansion of financial inclusion nationwide.

Here are things to know about the CBN’s National Licence Upgrade:

1. Nationwide operations now permitted

The national licence allows fintechs and microfinance banks to operate legally across all states, removing previous regional or state-level restrictions.

2. Stronger regulatory oversight

The upgrade closes a regulatory gap by bringing fast-growing fintechs fully under CBN supervision, with tighter monitoring of operations nationwide.

3. Higher capital and compliance standards

National microfinance banks must now maintain a minimum capital base of about ₦5 billion, alongside stricter reporting, governance and risk-management requirements.

4. Physical presence is mandatory

Licensed institutions are required to establish physical branches or service centres in key locations, improving access for customers who need in-person support.

5. Improved consumer protection and dispute resolution

Expanded oversight and physical outlets are expected to enhance complaint handling, transaction reversals and customer redress mechanisms.

6. Fintechs remain distinct from commercial banks

Despite the upgrade, fintechs and MFBs are not deposit money banks and are still limited to services permitted under their licence categories.

7. Agent banking networks will expand

Nationwide approval enables firms to scale agent networks across Nigeria, boosting access to cash-in, cash-out and payment services, especially in underserved areas.

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8. Boost for financial inclusion and rural economies

The move supports the CBN’s cashless and financial inclusion agenda, improving access to digital payments, savings and credit for rural communities and informal workers.

9. Rising operational costs for operators

Maintaining nationwide infrastructure, compliance teams and physical outlets is expected to increase operating expenses for affected firms.

10. Pressure on smaller fintechs

Higher capital and compliance demands may strain smaller players, potentially leading to mergers or market consolidation.

11. Greater focus on data protection and cybersecurity

As operations scale nationally, regulators are expected to intensify scrutiny of data privacy, cybersecurity and customer information protection.

12. Increased competition for traditional banks

Commercial banks may face stiffer competition in retail payments and SME services, particularly where fintech agents are more accessible than bank branches.

13. Stricter penalties for regulatory breaches

National licence holders face tougher sanctions for violations, including fines, operational restrictions or licence withdrawal.

14. Higher transparency expectations

The CBN will require more frequent disclosures, audits and performance reports to monitor financial stability risks.

15. Potential boost to investor confidence

National regulatory approval may strengthen investor trust in Nigeria’s fintech sector and attract additional local and foreign investment.