BY COBHAM NSA – As part of ongoing efforts to drive financial inclusion and strengthen standards in digital finance nationwide, the Central Bank of Nigeria (CBN) has upgraded the licenses of major Fintechs (Financial Technologies) companies and Microfinance Banks (MfBs) to national status.
This latest development allows all the upgraded financial institutions to operate across the country following compliance with existing regulatory requirements in the nation’s banking sector.
Listed as key beneficiaries and players in the upgraded status are Moniepoint MFB, Opay, Kuda Bank, Palmpay, and Paga, which have grown rapidly through mobile technology and agent networks to effectively expand beyond their previous regional licenses.
Confirming this fresh approval at the annual conference of the Committee of Heads of Banks’ Operations in Lagos, Director of the Other Financial Institutions Supervision Department, Yemi Solaja, said: “Institutions like Moniepoint MFB, Opay, Kuda Bank, and others have now been upgraded. In practice, their operations are already nationwide.”
Solaja, who stressed the importance of physical presence for customer support, said: “Most of their customers operate in the informal sector. They need a clear point of contact if any issues arise.”
Going by the upgrade, the new regulatory standards include increased capital requirements for national MFBs which is now set at around N5 billion, up from N2 billion under prior rules, with physical operational offices for in-person contact and dispute resolution as well as continuous financial inclusion drive.
Importantly, these physical branches or service centres in major locations are meant to promote in-person contact and support customers who may not be fully served through digital channels alone.
Also, the Fintechs’ elevated status requires stricter compliance and reporting standards to ensure consumer protection and stability in the nation’s financial system.
Besides ensuring stronger regulatory oversight over institutions operating across Nigeria, financial experts are upbeat that the move will further support the Central Bank’s cashless and financial inclusion goals with the digital platforms helping to reduce high volumes of cash outside the formal banking system
