The Central Bank of Nigeria (CBN) has formally upgraded the operating licences of several leading financial technology (FinTech) companies and technology-driven microfinance banks (MFBs) from state or regional status to national licence category, a landmark decision aimed at aligning regulatory frameworks with the rapid expansion and nationwide reach of digital financial institutions.
The announcement was made during the 2026 Banking Operations Conference held in Lagos on January 23, 2026, where senior CBN officials, including representatives from the Payments System Management Department and the Financial Policy and Regulation Department, addressed industry stakeholders, commercial bank executives, FinTech founders, and regulatory compliance officers. The move reflects the apex bank's recognition that many digital-first players, originally licensed for limited geographic operations, have evolved into de facto national entities serving millions of customers across all 36 states and the Federal Capital Territory.
According to the CBN, the upgrade process is neither automatic nor retroactive. Institutions seeking national status must demonstrate compliance with enhanced prudential requirements, including higher minimum capital thresholds, robust corporate governance structures, comprehensive risk management frameworks, anti-money laundering (AML) and counter-terrorism financing (CTF) controls, cybersecurity standards, and consumer protection mechanisms. Only those that successfully met these benchmarks were granted the upgrade.
Among the prominent institutions confirmed to have transitioned to national licences are:
- Moniepoint (formerly TeamApt): The Lagos-based payments and business banking platform, which has grown to serve over 2 million businesses and millions of individual users, was one of the first to secure national status. Moniepoint's ecosystem includes point-of-sale (PoS) terminals, mobile banking, payroll solutions, and digital collection tools widely adopted by small and medium enterprises (SMEs) in urban and rural areas.
- Opay (operated by OPay Digital Services Limited): The super-app platform, backed by Chinese tech giant OPay, has become one of Nigeria's largest digital wallets, offering ride-hailing payments, bill payments, airtime/data top-ups, savings, loans, and transfers. Opay's national licence reflects its extensive agent network and user base spanning every geopolitical zone.
- Kuda Bank (Kuda Technologies Limited): Known as Nigeria's first fully digital bank, Kuda has expanded from a mobile-only neobank to a comprehensive financial services provider with free transfers, savings vaults, loans, and investment options. The upgrade formalizes Kuda's nationwide operations, which previously operated under a microfinance bank licence with state-level restrictions.
Other platforms and MFBs that have either completed or are in advanced stages of the national licence upgrade include Palmpay, FairMoney Microfinance Bank, Carbon (formerly Paylater), and a number of other digital lenders and payment service providers that have scaled beyond their original licence scopes.
The CBN explained that the previous licensing regime—categorizing institutions as unit, state, or national—had become misaligned with market realities. Many FinTechs and digital MFBs had secured state licences at inception but rapidly expanded their digital footprints through mobile apps, USSD channels, agent banking networks, and partnerships, effectively operating nationwide without corresponding regulatory adjustments. This created gaps in oversight, reporting consistency, and consumer safeguards.
“These upgrades are not rewards; they are regulatory corrections,” a senior CBN official stated during the conference panel session titled “Digital Financial Inclusion: Balancing Innovation and Stability.” “Where an institution's operations, customer base, transaction volume, and risk profile have clearly outgrown its original licence category, it is incumbent on the regulator to bring the licence in line with reality. This ensures stronger supervision, better data integrity, and enhanced consumer protection.”
The national licence imposes stricter obligations. Institutions must:
- Maintain higher capital adequacy ratios (typically ₦5 billion or more for national MFBs, with additional buffers for digital risk);
- Submit consolidated financial reports covering all geographic zones;
- Implement group-wide risk management and internal audit functions;
- Establish physical customer service centres or designated dispute resolution points in at least six geopolitical zones;
- Comply with tiered Know-Your-Customer (KYC) requirements and transaction monitoring thresholds;
- Participate fully in the Nigeria Inter-Bank Settlement System (NIBSS) Instant Payment (NIP) framework and other national payment rails.
Regulators stressed that the requirement for physical touchpoints—despite the digital-first nature of these institutions—is deliberate. Many customers in the informal sector, rural areas, and low-literacy communities still prefer in-person support for account opening, dispute resolution, biometric verification, and cash-in/cash-out services. The CBN reiterated that digital banks and FinTechs are expected to maintain accessible physical presence in strategic locations to bridge the gap between online convenience and offline trust.
Another key theme at the conference was collaboration between traditional commercial banks and FinTechs to tackle Nigeria's persistent cash-in-circulation challenge. Despite rapid growth in digital payments—mobile money transactions surpassed ₦200 trillion in 2025 according to NIBSS data—cash remains dominant in informal trade, rural markets, and low-value transactions. CBN officials urged commercial banks to deepen partnerships with nationally licensed FinTechs for last-mile distribution, agent network expansion, and interoperability.
“The cash outside the banking system is not just a statistic; it is a structural issue,” the CBN Director of Payments System Management remarked. “We need every licensed player—commercial banks, national MFBs, and FinTechs—working together to bring more economic agents into the formal fold. Interoperability, shared agent networks, and joint financial literacy campaigns are critical.”
Industry reactions have been largely positive but tempered with calls for clarity and support during the transition. FinTech Association of Nigeria (FinTechNGR) President commended the CBN for recognizing market evolution but urged regulators to provide clear timelines, transitional relief on certain capital requirements, and technical assistance for smaller digital players aspiring to national status.
Commercial bank executives welcomed the upgrades, noting that stronger oversight of digital competitors levels the playing field and reduces systemic risk. “When everyone operates under appropriate supervision, the entire ecosystem becomes more stable,” said the CEO of one tier-1 bank during a breakout session.
For consumers, the national licence status brings several potential benefits: improved deposit protection (as national MFBs fall under the Nigeria Deposit Insurance Corporation framework with higher coverage limits), better recourse through the CBN Consumer Protection Framework, standardized service levels, and greater confidence in using digital platforms for everyday transactions.
However, analysts caution that the upgrade does not automatically translate to profitability or sustainability. Many FinTechs and digital MFBs continue to grapple with high customer acquisition costs, regulatory compliance expenses, fraud risks, foreign exchange constraints, and competition from both incumbents and new entrants. The requirement for physical touchpoints may also increase operational costs for purely digital players.
The CBN indicated that the upgrade process remains ongoing. Additional institutions that meet the criteria will be granted national status in phases, with regular assessments to ensure continued compliance. The apex bank also hinted at future reviews of the overall licensing framework, including potential new categories for super-apps, open banking providers, and embedded finance platforms.
This regulatory evolution comes at a pivotal moment for Nigeria's financial services sector. Digital payments penetration has grown from less than 10% in 2015 to over 60% of retail transactions in 2025, driven by mobile money, USSD banking, QR codes, and instant transfers. The formalization of national status for key digital players is seen as a necessary step to sustain this momentum, protect consumers, and ensure financial stability as Nigeria aims for greater inclusion and reduced cash reliance.
As the upgrades take effect, stakeholders across the ecosystem—banks, FinTechs, regulators, agents, and customers—will watch closely to see how the new framework shapes competition, innovation, and access in Africa's largest economy.
