CBN Grants National Reach to Microfinance Banks, Fintechs

By Inemesit Friday 

The Central Bank of Nigeria has upgraded the operating licences of selected microfinance banks and financial technology firms to national status, enabling them to expand their services across the country.

The development was disclosed on Tuesday by the Director of the Other Financial Institutions Supervision Department at the apex bank, Mr Semi Solaja. He clarified that the licence upgrade was not automatic, stressing that only institutions that met clearly defined regulatory, compliance and operational benchmarks were approved.

Solaja explained that the national licence permits microfinance banks and fintech firms to operate legally in all states of the federation, lifting earlier regional or state level limitations. He noted that the move also addresses a long standing regulatory gap by placing fast growing fintech companies fully under the Central Bank’s supervisory framework, allowing for closer monitoring of their activities nationwide.

According to him, microfinance banks granted national licences are now required to maintain a minimum capital base of about ₦5 billion. They must also comply with stricter standards on corporate governance, risk management and periodic reporting.

Solaja further revealed that licensed institutions are expected to establish physical branches or service centres in strategic locations across the country. He said the requirement is aimed at improving customer access, particularly for users who require in person financial services and support.

He added that the CBN remains committed to strengthening financial inclusion while ensuring stability and consumer protection within Nigeria’s rapidly evolving financial ecosystem.