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.
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.
Despite these restrictions, digital banking platforms like Kuda Bank, Opay, Moniepoint, Palmpay, etc built user bases nationwide.
Their rapid growth created a regulatory gap between their licence scope and operational reality.
The CBN, concerned about risks posed by this mismatch, introduced reforms to match licensing to actual scale.
The national licence upgrade reflects a broader regulatory shift to formalize digital finance players and enhance trust in Nigeria’s financial system.
Credit: NairaMetrics
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