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Nigeria's Central Bank fined fintech giants Moniepoint and OPay ₦1 billion each in the second quarter of 2024 for regulatory violations. This follows increased scrutiny of the fintech sector, with concerns over compliance with licensing and Know Your Customer (KYC) standards. Other fintech firms were also penalized.

According to TechCabal, Nigeria’s Central Bank (CBN) has fined fintech giants Moniepoint and OPay ₦1 billion each in the second quarter of 2024, as part of a crackdown on regulatory violations. This follows a routine audit of the fintech sector, which revealed compliance issues. The CBN has increasingly used fines as a tool to ensure adherence to financial regulations. Last year, Nigerian banks collectively paid ₦678 million in penalties, and in October 2024, the central bank and the Securities and Exchange Commission (SEC) imposed a combined ₦15 billion fine on ten commercial banks for various infractions.

Moniepoint and OPay were among the hardest hit, with their penalties coming amid rapid growth in Nigeria's fintech sector. OPay, which has around 40 million customers, and Moniepoint, which processed over 5 billion transactions in 2023, operate under microfinance bank licenses. Originally designed to support small businesses, these licenses have enabled these companies to expand significantly, raising concerns about their ability to safeguard customers.

The CBN’s growing scrutiny of the sector comes after concerns over fintech companies' adherence to Know Your Customer (KYC) regulations. In 2024, the central bank imposed a two-month ban on several fintech companies, including Kuda Bank and Palmpay, for KYC non-compliance. While Moniepoint has not commented on the fines, OPay has denied the claims, calling them false. The CBN has yet to respond to requests for comments.