The Central Bank of Nigeria (CBN) has officially upgraded the operating licence of OPay to full national status, joining several leading fintech companies and microfinance banks (MFBs) now authorised to operate legally across all states in the federation.
The announcement was made by Yemi Solaja, Director of the Other Financial Institutions Supervision Department at the CBN, during the annual Committee of Heads of Banks’ Operations conference held in Lagos. He explained that the licence upgrade reflects the reality of the company’s operations and its significant footprint across Nigeria.
Why the Licence Upgrade Matters
Before the upgrade, many fintech firms like OPay were operating under limited or regional licences that did not fully match the scale of their actual market reach. The rapid expansion of digital financial services — powered by mobile technology and wide agent networks — meant that companies such as OPay were already serving customers nationwide, despite holding licences restricted to certain geographical areas.
The CBN noted that the move to national licences is not automatic. Institutions must meet strict regulatory benchmarks before the upgrade is approved, including governance, compliance, risk management, and operational standards. OPay and other firms met these conditions, prompting the apex bank to formalise their regulatory status.
What National Status Means for OPay
With its licence upgraded to national status, OPay now has formal approval to operate across all 36 states and the Federal Capital Territory. This change aligns the company’s legal status with its actual operations, ensuring stronger regulatory oversight and consumer protection.
CBN officials emphasised that national status also requires these companies to maintain physical presence or service centres in key locations, even though they primarily operate digitally. This requirement is aimed at improving customer support and dispute resolution, especially for users in the informal sector who may prefer face-to-face assistance.
Impact on Nigeria’s Financial System
The licence upgrade for OPay and others like Moniepoint, Kuda Bank, Palmpay and Paga represents a significant step in strengthening the regulation of Nigeria’s fast-growing fintech sector. Regulators have noted that aligning licences with actual reach helps close regulatory gaps while expanding financial inclusion.
By granting national licences, the CBN also aims to support its broader goals of deepening financial inclusion, reducing the volume of cash outside the formal banking system, and improving oversight of digital payment platforms. This is especially important given the prominence of fintech services in everyday transactions across urban and rural communities.
Regulatory Expectations and New Requirements
The upgraded national status comes with stricter capital and compliance requirements. For example, national microfinance banks are now expected to maintain a higher minimum capital base to ensure financial stability. These enhanced requirements demonstrate the apex bank’s commitment to ensuring a safe and robust financial ecosystem as digital finance continues to evolve.
CBN has also encouraged stronger collaboration between commercial banks and fintech firms to jointly address longstanding challenges such as the high volume of cash outside the formal banking system while boosting digital financial services.
What This Means for Customers
For consumers and businesses, the licence upgrade is a positive development. It provides assurance that platforms like OPay are regulated at the highest level and are recognised as integral players in Nigeria’s financial landscape. The change also enhances confidence in digital financial services, encouraging more Nigerians to adopt fintech solutions for everyday banking, payments, and financial management.
As fintech firms like OPay continue to expand, the new national licences are expected to support growth in digital finance, increase access to financial services, and promote innovation in the country’s financial sector.
Summary
- The CBN has upgraded OPay’s operating licence to national status, allowing it to operate legally across Nigeria’s 36 states and FCT.
- The upgrade reflects the company’s actual nationwide operations and compliance with regulatory standards.
- National status brings stronger oversight, consumer protection, and higher compliance requirements.
- The move supports the CBN’s financial inclusion strategy and broader fintech growth objectives.