The Central Bank of Nigeria (CBN) has intensified its regulatory scrutiny of the country’s fintech sector, imposing ₦1 billion fines on two of its largest unicorns, Moniepoint and OPay, in the second quarter of 2024, sources told TechCabal.
The penalties, part of a routine CBN audit, revealed compliance lapses across several fintech companies. While Moniepoint and OPay were the most heavily penalized, at least four other firms also faced fines, though the details of those penalties remain unclear.
The CBN’s increasing reliance on fines to enforce regulatory compliance is not new. In 2023, Nigerian banks paid a combined ₦678 million in penalties, and in October 2024, the CBN and the Securities and Exchange Commission (SEC) jointly fined ten commercial banks ₦15 billion.
Until recently, Nigeria’s rapidly expanding fintech sector had operated with minimal CBN intervention. However, the rapid growth of companies like OPay, which serves around 40 million customers, and Moniepoint, which processed 5.2 billion transactions in 2023, has drawn increased regulatory attention.
A key concern is that many fintechs operate under microfinance bank licenses, originally intended to support small enterprises. These licenses have allowed companies to scale quickly, but critics argue the framework is insufficient to ensure customer protection at their current size.
The CBN has also raised issues with fintechs’ compliance with Know Your Customer (KYC) requirements. In April 2024, the central bank imposed a two-month ban on customer onboarding for several firms, including Kuda Bank and Palmpay, citing KYC violations. This forced companies to overhaul their processes and pledge improved compliance.
Moniepoint declined to comment on the matter. Meanwhile, OPay issued a statement denying the fine. “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,” the company said.
The CBN has not yet responded to requests for comment.
