The Central Bank of Nigeria (CBN) has significantly intensified its scrutiny of fintech
startups. Recent reports indicate that two of the nation’s leading fintech companies,
Moniepoint and Opay, were each subjected to a penalty of ₦1 billion during the second
quarter of 2024. Numerous other fintech firms also faced sanctions due to compliance
deficiencies, emphasizing the critical nature of regulatory checks in the CBN's oversight
responsibilities. To promote adherence to regulatory standards, the CBN has
increasingly implemented financial penalties.
Moreover, in October 2024, the CBN imposed substantial fines on ten commercial
banks, including GTB and Zenith Bank, for various regulatory infractions. Fintech
entities such as Opay, which claims a customer base of approximately 40 million, and
Moniepoint, which has processed 5.2 billion transactions, have refrained from disclosing
precise customer figures, however, their market presence remains considerable.
A significant concern is that many fintech companies are continuing to operate under
microfinance bank licenses, which were originally established to support micro, small,
and medium enterprises. Furthermore, the CBN has expressed particular concern
regarding these fintechs' compliance with Know Your Customer (KYC) protocols. On
April 21, 2024, the CBN enforced a two-month ban on companies such as Kuda and
Palmpay for failing to adhere to KYC standards.