The Digest:
The Central Bank of Nigeria (CBN) has upgraded the operating licenses of major fintech firms Moniepoint, OPay, and Kuda from microfinance to national microfinance bank status. According to reports from financial outlets, the announcement was made by CBN Director Yemi Solaja at a banking conference in Lagos. The upgrade formalizes their existing nationwide digital and agent network operations, requiring them to meet a higher capital base of ₦5 billion, enhance Know-Your-Customer (KYC) compliance, and establish dedicated offices for customer complaints.
Key Points:
- The move formally recognizes and regulates the massive scale these digital-first platforms have already achieved across Nigeria.
- It imposes stricter financial and operational requirements, aiming to strengthen consumer protection and systemic stability.
- The upgrade helps close a regulatory gap, bringing large digital operators under a framework commensurate with their reach and risk profile.
- It is a significant step in deepening formal financial inclusion by legitimizing and integrating popular digital channels into the national banking structure.
- The new status falls short of a full commercial banking license, maintaining a distinct category for their specific service model.
Sources: Nairametrics
