Exciting news from the Central Bank of Nigeria (CBN)! Major players in the FinTech and microfinance sectors, including Opay and Moniepoint, have just received upgrades to their licenses, allowing them to operate nationwide. This significant move showcases their compliance with regulatory requirements and recognizes their growth in the financial landscape.
The upgrade affects key institutions like Moniepoint MFB, Opay, Kuda Bank, Palmpay, and Paga, all of which have made remarkable strides through mobile technology and expansive agent networks, outgrowing their previous regional licenses.
Yemi Solaja, the Director of the Other Financial Institutions Supervision Department, announced this exciting development at the recent annual conference of the Committee of Heads of Banks’ Operations in Lagos. He stated, “Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide!”
In his remarks, Solaja highlighted the critical role of physical presence for customer support. He noted that “most of their customers operate in the informal sector. They need a clear point of contact if any issues arise.”
With this upgrade to national licenses, these FinTech innovators will face new responsibilities, including higher capital requirements—like N5 billion for national MFBs—and the need to maintain offices for effective dispute resolution, all while continuing their mission to enhance financial inclusion.
This shift comes on the heels of previous enforcement actions, including hefty penalties in 2024, where Moniepoint and Opay were each fined N1 billion for KYC non-compliance. It’s clear that the CBN is committed to raising the standards in the digital finance space, and these upgrades are a promising step in that direction!