By Our Reporter
Lagos, Nigeria — January 27, 2026 — The Central Bank of Nigeria (CBN) has formally upgraded the operating licences of several major financial technology companies and microfinance banks (MFBs) to national status, granting them legal authority to operate across all 36 states and the Federal Capital Territory after meeting key regulatory requirements.
The move, confirmed by Yemi Solaja, Director of the Other Financial Institutions Supervision Department at the CBN, was announced during the annual Committee of Heads of Banks’ Operations (CHBOs) conference held in Lagos. It reflects the rapid expansion of digital lenders and payment platforms that have grown beyond the geographical limits of their earlier licences.
Among the institutions whose licences were upgraded are Opay, Moniepoint Microfinance Bank, Kuda Bank, Palmpay and Paga. These firms have extended their services nationwide through mobile technology and extensive agent networks, prompting the central bank to align their legal status with their actual reach.
Under the new national framework, the affected fintechs and MFBs can expand operations throughout Nigeria rather than being confined to specific regions. Solaja emphasized that the upgrade was not automatic, noting that the institutions had to satisfy enhanced regulatory, compliance and operational benchmarks before approval
The CBN’s decision also imposes stricter regulatory standards. Nationally licensed microfinance banks must now maintain a higher minimum capital base — around ₦5 billion — alongside reinforced reporting, governance, and risk-management practices. Licensed firms are also expected to establish physical branches or service centres in key locations to improve customer support and dispute resolution.
The regulator said the licence upgrades are part of broader efforts to strengthen oversight of rapidly growing fintech operators and to sustain Nigeria’s push for greater financial inclusion, especially in underserved and rural communities where digital financial services have become vital.
Although this development formally recognises the nationwide operations of these firms, the CBN reiterated that fintechs and microfinance banks remain distinct from commercial banks and are limited to the scope of their permitted activities under the national licence regime.
Industry observers say the move helps close regulatory gaps created as digital-first financial services flourish, while also positioning these players as key contributors to Nigeria’s evolving financial ecosystem.
If you’d like, I can also provide a brief explainer on what national status means for fintech users and small businesses in Nigeria.
