The Central Bank of Nigeria (CBN) has upgraded the operating licences of several leading financial technology firms and microfinance banks to national status, aligning their regulatory approvals with their expanded nationwide operations.

The announcement was made by Yemi Solaja, Director of the Other Financial Institutions Supervision Department, during the 2026 Committee of Heads of Banks’ Operations (CHBOs) conference held in Lagos.

The regulatory adjustment reflects the rapid expansion of digital finance institutions that were initially licensed under regional or tiered frameworks but have since scaled operations across Nigeria through mobile platforms and agent banking networks.

Bridging the Regulatory Gap

According to the apex bank, the upgrade corrects a structural imbalance in which fintech operators were effectively running nationwide services under licences originally intended for limited geographic coverage.

Institutions that have secured national authorisation include OPay, Moniepoint Microfinance Bank, Kuda Bank, PalmPay, and Paga. With national status, these firms are now formally authorised to operate across all 36 states and the Federal Capital Territory.

CBN officials stressed that the transition is conditional on meeting enhanced supervisory, governance, and risk management benchmarks. The approval process requires institutions to demonstrate operational resilience, compliance maturity, and adequate internal controls suitable for system-wide exposure.

Higher Capital and Compliance Requirements

The elevation to national licence status comes with stricter financial and operational obligations.

National microfinance banks are now required to maintain a minimum paid-up capital of approximately ₦5 billion, compared to ₦2 billion under previous licensing tiers. In addition, institutions must establish physical service centres or branches in strategic locations to strengthen consumer engagement and improve dispute resolution mechanisms.

The CBN noted that the physical presence requirement complements digital operations, ensuring that underserved and informal sector participants have access to face-to-face customer support when necessary.

Reinforcing Financial Stability and Inclusion

The regulator said the upgraded framework enhances supervisory clarity as digital finance platforms increasingly serve millions of Nigerians beyond the reach of traditional commercial banks.

By aligning licensing with operational scale, the CBN aims to strengthen consumer protection, improve systemic risk monitoring, and formalise segments of the financial ecosystem that have grown rapidly in recent years.

The move also supports Nigeria’s broader financial inclusion agenda, particularly in rural and semi-urban areas where mobile adoption and agent networks have accelerated account penetration.

Market Implications

Industry analysts view the licence upgrades as a defining moment in Nigeria’s evolving digital banking landscape. The new structure could reshape competitive positioning, capital strategies, and compliance frameworks among fintech operators and microfinance institutions.

As regulatory expectations increase, institutions may need to recalibrate governance models, technology infrastructure, and capital planning to sustain growth while maintaining regulatory alignment.

The CBN’s decision signals a maturing fintech ecosystem in which digital-first financial institutions are now being integrated more firmly into the formal banking architecture.

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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.

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