…urges Banks–FinTech collaboration to reduce cash outside the banking system
By Sodiq Adelakun
The Central Bank of Nigeria (CBN) has upgraded the operating licences of several leading FinTech firms and Microfinance Banks (MFBs), including Opay, Moniepoint and Kuda Bank, granting them national status in recognition of their nationwide footprint.
The development was disclosed by Mr Yemi Solaja, Director of the Other Financial Institutions Supervision Department (OFISD) at the CBN, during the annual conference of the Committee of Heads of Banks’ Operations (CHBOs) held in Lagos.
According to Solaja, the move is intended to correct a growing gap between the limited licences held by some digital financial institutions and the reality of their operations, which now cut across all parts of the country.
“We observed that some institutions were operating nationwide while holding licences meant for limited regions,” he said. “Institutions like Moniepoint MFB, Opay, Kuda Bank and others have already been upgraded because, in reality, their activities are all over the country.”
He explained that many of these platforms serve customers in the informal sector, making it important for them to have clearly defined national structures.
“Most of their customers are informal people. They need to know where to report to when there is a problem,” Solaja added.
The CBN stressed that the upgrade process is not automatic, noting that only institutions that meet strict regulatory and supervisory requirements are granted national licences.
FinTech firms and tech-driven MFBs have expanded rapidly in recent years, driven by mobile banking and large agent networks across urban and rural areas. Although many were initially licensed under unit, tier-one or tier-two categories, their digital platforms enabled them to build nationwide customer bases, creating concerns for regulators.
By upgrading these licences, the apex bank said it is bringing regulation in line with the scale and reach of these institutions, while strengthening oversight of Nigeria’s fast-growing digital finance space.
Solaja also called for stronger collaboration between commercial banks and FinTechs, particularly in addressing Nigeria’s high volume of cash circulating outside the formal banking system. He encouraged the adoption of “digital-first” banking models to improve efficiency and financial inclusion.
The CBN added that despite being technology-driven, national FinTechs and MFBs must maintain physical offices in key locations to resolve disputes and serve customers who require face-to-face support.
With the new status, affected institutions will now face stricter capital and compliance requirements. National MFBs are required to maintain a minimum capital base of N5 billion, up from N2 billion, alongside tighter regulatory standards