The Central Bank of Nigeria (CBN) has imposed heavy fines of ₦1 billion each on two leading fintech companies, Moniepoint and OPay.
The action was a result of an extensive audit of the sector in the second quarter of 2024.
This step is part of the apex bank’s intensified efforts to enforce regulatory compliance in Nigeria’s burgeoning fintech industry, which has seen exponential growth in recent years.
The fines stemmed from a routine regulatory audit conducted by the CBN, which reportedly uncovered inadequacies in compliance. While specific offences remain undisclosed, the audit forms part of standard oversight procedures for financial institutions under CBN supervision.
In addition to Moniepoint and OPay, at least four other fintech companies were said to have been sanctioned, although details of their fines have yet to be made available.
This regulatory clampdown signals the CBN’s growing focus on ensuring that fintech operators align with established financial and operational standards.
The CBN has increasingly relied on fines to enforce compliance across the financial sector.
In 2023 alone, Nigerian banks collectively paid ₦678 million in penalties for various infractions.
In October 2024, the CBN and the Securities and Exchange Commission (SEC) imposed a staggering ₦15 billion fine on ten commercial banks, including prominent names like Zenith Bank and GTBank.
Nigeria’s fintech sector has thrived with minimal regulatory intervention, but the rapid expansion of companies like Moniepoint and OPay has brought them under closer scrutiny.
OPay boasts a customer base of 40 million, while Moniepoint processed 5.2 billion transactions in 2023, showing their significant market influence.
A key area of concern is their reliance on microfinance bank licenses. Originally designed to serve micro, small, and medium enterprises (MSMEs), these licenses have allowed fintech companies to scale rapidly.
However, critics argued that the framework is inadequate to address the operational complexities and risks associated with serving millions of customers.
Compliance with Know Your Customer (KYC) regulations has also been a contentious issue. Earlier this year, the CBN imposed a temporary ban on customer onboarding for several fintech firms, including Kuda Bank and Palmpay, citing non-compliance with KYC standards.
However, the two Fintechs have declined to comment on the issue since the sanction was announced by the CBN.
