The Central Bank of Nigeria (CBN) has upgraded the operating licences of several FinTech companies and Microfinance Banks (MFBs) to national status, a move aimed at closing regulatory gaps created by the rapid expansion of digital financial services across the country.
The decision was disclosed by the Director of the Other Financial Institutions Supervision Department (OFISD) at the CBN, Yemi Solaja, during the annual conference of the Committee of Heads of Banks’ Operations (CHBOs) held in Lagos.
According to the apex bank, the upgrade reflects the reality that many FinTechs and tech-driven MFBs now operate far beyond the regional limits of their original licences, serving customers nationwide through digital platforms and extensive agent networks.
Solaja said the CBN observed a growing mismatch between the scope of licences held by some institutions and the scale of their operations, noting that several digital lenders and payment platforms already have a presence across all regions of Nigeria.
He explained that the new licensing structure is intended to strengthen regulatory supervision, ensure accountability, and provide clarity for customers—particularly those in the informal sector—on where to seek redress in cases of disputes or service failures.
The CBN also used the forum to reiterate the need for closer collaboration between commercial banks and FinTech operators, especially in addressing the challenge of cash remaining outside the formal banking system. Solaja emphasised that while digital platforms have widened access to financial services, stronger coordination is required to deepen inclusion and improve cash management.
Under the revised framework, institutions granted national licences will be subject to higher capital requirements and stricter compliance standards. National MFBs are now required to maintain a minimum capital base of ₦5 billion, compared to the previous ₦2 billion threshold.
Despite their digital focus, the regulator stressed that national FinTechs and MFBs must maintain physical touchpoints in strategic locations to support dispute resolution and serve customers who require in-person engagement.
The licence upgrade forms part of broader regulatory reforms by the CBN to formalise the growing digital finance ecosystem, enhance consumer protection, and ensure that the expansion of FinTech services does not outpace effective supervision.
