• Moniepoint, Opay, Kuda, and others gain national status with tighter oversight
• A naira 5 billion minimum capital requirement now applies to national operators
• Nigeria’s fintech market is valued at $1.13 billion and projected to reach $4.24 billion

The Central Bank of Nigeria (CBN) has upgraded the licenses of several financial technology companies and microfinance banks to national status, citing the rapid expansion of fintech adoption across the country.

The announcement was made on January 23 at the annual conference of the Committee of Heads of Banks’ Operations in Lagos. Yemi Solaja, director of the CBN’s Other Financial Institutions Supervision Department, said institutions such as Moniepoint MFB, Opay, and Kuda Bank had effectively become national players. “In reality, their activities are now all over the country,” Solaja said, adding that the regulator needed to ensure oversight matched the scale of their reach, as local media reported.

The licence upgrades are also intended to strengthen consumer protection, particularly for customers in the informal economy who make up a large share of digital lenders’ user base. The CBN stressed that nationally licensed fintechs and microfinance banks must maintain physical branches in key locations to provide dispute resolution and face-to-face engagement for customers who prefer in-person service.

Stricter compliance standards accompany the upgrades. National microfinance banks are now required to hold a minimum capital base of ₦5 billion ($3.3 million), up from ₦2 billion ($1.3 million) previously, to bolster financial resilience, as reported by local media.

Digital finance, supported by technology, has expanded access to a wide range of financial services for Nigerians. These include credit, savings, insurance, investments, and retirement plans. Services are delivered through mobile phones, point‑of‑sale devices, and agent networks, making transactions easier and helping move the country toward a cashless economy, according to the CBN’s 2022 Economic and Financial Review.

The surge in adoption has been driven by mobile banking, agent networks, and limited access to traditional banks. Nigeria’s fintech sector offers easier account opening, lower transaction costs, and more reliable services than many legacy institutions, according to local media reports. This rapid expansion has created what regulators view as a widening gap between licence scope and operational reality.

This growth is reflected in market data. Nigeria’s fintech industry is now valued at USD 1.13 billion (2024) and is projected to reach USD 4.24 billion by 2033, growing at a compound annual growth rate of about 15.8%, according to consulting firm IMARC group.

Hikmatu Bilali