CBN Upgrades OPay, Kuda, Paga to National MFB Licences

In Short

Nigeria’s Central Bank, the CBN, has upgraded several large fintech-led microfinance institutions to national microfinance bank status. The move covers OPay, Moniepoint, Kuda, PalmPay, and Paga.

What Happened

The CBN licence changes put OPay at the center of a 2026 regulatory reclassification that expands what these institutions can do nationwide.

At a banking operations conference in Lagos in January 2026, CBN director Yemi Solaja said some institutions, including Moniepoint MFB, OPay, and Kuda Bank, had already been upgraded.

The National Orientation Agency later explained the logic in a public post. It said the upgrade reflects that these digital finance companies already serve customers across Nigeria and have outgrown regional limits.

A national microfinance bank licence allows a microfinance bank to operate across the country, instead of being limited to a state or region. Microfinance banks typically focus on deposits, small business banking, and small loans, under rules that differ from commercial banks.

The NOA also said the upgrade comes with tighter rules. These include higher capital requirements, stronger regulatory oversight, better customer protection, and clearer complaint resolution channels.

Why It Matters

For founders and operators in Nigeria’s fintech sector, this is a signal that the CBN wants large deposit-taking fintechs to sit in clearer licence categories. Deposit-taking means holding customer balances, similar to how a bank holds your money.

For the upgraded firms, stricter supervision can raise operating costs, but it can also reduce regulatory uncertainty when expanding products like savings, merchant services, and credit.

For the market, national MFB status may intensify competition for deposits, agent networks, and SME customers. It may also push smaller fintechs to partner with licensed institutions, or pursue their own regulated pathways as the CBN tightens enforcement.