The Central Bank of Nigeria has imposed ₦1 billion fines on two of the country’s largest fintech unicorns, Moniepoint and OPay, in the second quarter of 2024, TechCabal.
These penalties are part of a broader crackdown on the fintech sector, with several other fintech companies also facing sanctions, though the exact details of their fines remain undisclosed.
The fines followed a routine audit by the CBN, which uncovered several compliance issues within the fintech industry. Sources close to the process confirmed that such regulatory checks are standard for banks and financial institutions operating under the CBN’s oversight.
While Moniepoint and OPay were the most significantly penalized, at least four other fintech companies were also fined, further highlighting the central bank’s increased focus on the sector.
The CBN has increasingly used fines as a tool to ensure adherence to regulatory guidelines. In 2023, Nigerian banks collectively paid ₦678 million in penalties. More recently, in October 2024, the CBN, in collaboration with the Securities and Exchange Commission, imposed a ₦1.5 billion fine on ten commercial banks, including Zenith and GTBank, for various infractions in the first half of the year.
Until recently, Nigeria’s fast-growing fintech sector largely operated with minimal interference from the CBN. However, as fintech giants like OPay and Moniepoint have scaled to serve millions of customers, they have attracted more regulatory attention.
OPay, for example, claims a user base of around 40 million, while Moniepoint, which processed 5.2 billion transactions in 2023, is similarly large, although it has not disclosed exact customer numbers.
The rapid expansion of these fintech firms has raised concerns over the adequacy of existing regulatory frameworks, particularly regarding their operating licenses. Both OPay and Moniepoint, like many other fintechs, operate under microfinance bank licenses, which were originally intended to support micro, small, and medium enterprises.
This has allowed them to grow quickly and serve millions of customers. However, as their influence grows, so do concerns that the current licensing model may not be sufficient to protect customers effectively, according to one source.
In addition to licensing concerns, the CBN has also been focused on fintechs’ adherence to Know Your Customer regulations. In April 2024, the central bank imposed a two-month ban on customer onboarding for several fintech companies, including Kuda Bank and Palmpay, due to failures in complying with KYC standards.
This action forced the affected companies to overhaul their onboarding processes and improve their compliance measures.
Moniepoint has not commented on the fine; however, OPay strongly refuted the claims. “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,” TechCabal reported “These claims are entirely false.”
