With the Central Bank of Nigeria (CBN) still trying to regulate fintech startups, they fined two of the country’s leading unicorns, Moniepoint and OPay, ₦1 billion each during the second quarter of 2024. According to sources familiar with the matter, the penalties stemmed from a routine audit by the CBN, which flagged compliance issues.
At least four other fintech companies were also fined during this period, though details of those penalties remain undisclosed. The CBN’s actions pinpoints its increasing reliance on financial penalties to enforce regulatory standards. For instance, in October 2024, the CBN and the Securities and Exchange Commission (SEC) jointly imposed a ₦15 billion fine on ten commercial banks.
Until recently, Nigeria’s booming fintech sector enjoyed relatively little interference from the central bank. However, the rise of companies like OPay, with a reported 40 million customers, and Moniepoint, which processed 5.2 billion transactions in 2023, has drawn closer regulatory scrutiny. These firms operate under microfinance bank licenses, which were initially designed for supporting small and medium enterprises. As these fintechs scaled to serve millions, concerns emerged about whether their licensing frameworks and operational practices adequately protect customers.
Compliance with Know Your Customer (KYC) processes has also been a recurring issue. In April 2024, the CBN temporarily banned customer onboarding for several fintech firms, including Kuda Bank and Palmpay, citing lapses in KYC standards. The two-month suspension forced these companies to revamp their onboarding procedures and pledge stricter adherence to regulatory guidelines.
In response to the allegations, OPay strongly denied the fine in a statement to TechCabal, stating:
“We categorically refute the claims that OPay Digital Services was fined by the Central Bank of Nigeria to the tune of ₦1 billion for regulatory infractions. These claims are entirely false.”
Moniepoint declined to comment on the issue, while the CBN did not immediately respond to inquiries.
