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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 stated that the upgrade process is not automatic and applies only to institutions that meet specific capital, compliance, and operational requirements. Many fintechs and digital lenders had grown to serve customers nationwide despite holding licences that restricted them to limited regions, prompting the regulator to align licensing approvals with operational realities.
Major players, including Moniepoint Microfinance Bank, OPay, Kuda Bank, and others, now hold national licences, granting them formal approval to operate in all states and to establish physical offices nationwide in line with regulatory requirements.
The upgraded status confirms that the affected institutions have met the higher minimum capital requirement for national microfinance banks, set at approximately ₦5 billion. With the national licence, customer accounts held with these institutions can also be used for salary payments, while account statements may be accepted for official and travel-related documentation, subject to applicable requirements.
According to the CBN, the revised licensing framework strengthens regulatory oversight of fintechs operating at scale and supports the continued expansion of financial inclusion and digital payment services across Nigeria.
The regulator noted that national licence holders are expected to maintain physical branches or service centres in key locations. This requirement is intended to improve access to in-person customer support and dispute resolution, particularly for customers who may not be fully served through digital channels alone.
The licence upgrade also supports the Central Bank’s cashless policy by helping to reduce the volume of cash circulating outside the formal financial system as digital financial platforms become more deeply embedded in everyday transactions.
Despite the expanded operational scope, the upgraded institutions remain distinct from traditional commercial banks. They do not accept cash deposits at physical offices, do not offer cheque services, and do not operate under the same framework as deposit money banks, even as they now function under a stronger national regulatory structure.
