By Ashiru Taofeek Adewale
The Central Bank of Nigeria (CBN) has upgraded the operating licences of several financial technology companies and microfinance banks (MFBs) to national status, formally authorising them to operate across all states of the federation.
The upgrade was announced at the Committee of Heads of Banks’ Operations (CHBOs) conference held in Lagos, following a regulatory review of institutions whose operations had expanded beyond the geographic limits of their original licences.
The CBN emphasized that the upgrade is not automatic and is reserved for institutions meeting stringent capital, compliance, and operational benchmarks. The shift addresses a growing discrepancy where numerous fintechs and digital lenders served customers across Nigeria while holding licences that confined them to specific regions.
Major industry players, including Moniepoint Microfinance Bank, OPay, and Kuda Bank, are among those now formally authorized to operate in all 36 states. The national licence permits them to establish physical offices anywhere in the country.
This upgraded status confirms the institutions have met the elevated minimum capital requirement of approximately ₦5 billion for national microfinance banks.
It also grants their customers enhanced utility: accounts can now be used for salary payments, and account statements may be accepted for official and travel documentation where applicable.
According to the CBN, the revised framework strengthens oversight of large-scale fintech operations and supports the expansion of financial inclusion and digital payments nationwide.
Licence holders will be required to maintain physical branches or service centres in key locations. The regulator states this condition is designed to ensure access to in-person customer support and dispute resolution, complementing digital services for all segments of the population.
The licence upgrade is also a strategic move to bolster the Central Bank’s cashless policy. By formalizing and expanding the reach of major digital financial platforms, the regulator aims to reduce the volume of cash circulating outside the formal banking system, deepening the integration of digital payments into everyday commerce.
Despite their new nationwide authorization, the upgraded institutions maintain a distinct operational model separate from traditional commercial banks. They do not accept over-the-counter cash deposits at physical locations, do not provide cheque services, and do not function under the same regulatory framework as full-fledged deposit money banks.
Their evolution continues under a specialized microfinance banking framework, albeit with a strengthened national regulatory structure.
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