In an ongoing effort to tighten oversight of Nigeria’s fintech sector, the Central Bank of Nigeria (CBN) imposed ₦1 billion fines on two of the country’s leading fintech unicorns, Moniepoint and OPay, in the second quarter of 2024, TechCabal reports.
The penalties were part of a routine audit by the CBN, which uncovered compliance issues. Several other fintech companies were also fined, although details of their penalties remain unclear.
These regulatory checks are standard procedures for financial institutions operating under the CBN’s supervision. In addition to Moniepoint and OPay, at least four other fintech firms faced similar penalties.
According to TechCabal, the CBN has increasingly relied on fines as a tool to enforce compliance. In 2023, Nigerian banks collectively paid ₦678 million in penalties. Earlier in 2024, the central bank, alongside the Securities and Exchange Commission (SEC), imposed a massive ₦15 billion fine on ten commercial banks, including Zenith and GTBank, for various infractions.
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While Nigeria’s fintech sector had previously expanded with minimal interference from regulators, the rapid growth of firms like OPay and Moniepoint, which now serve millions of users, has prompted increased scrutiny. OPay, for example, claims a customer base of around 40 million, while Moniepoint, which processed 5.2 billion transactions in 2023, also operates on a large scale, though it does not disclose exact customer figures.
With their rising influence, concerns have grown about the regulatory framework governing these fintech giants. Many, including OPay and Moniepoint, still operate under microfinance bank licenses, which were originally designed for smaller-scale financial operations supporting micro, small, and medium enterprises. These licenses have allowed for rapid expansion but have also raised concerns about whether the framework can effectively protect customers as these companies scale.
The CBN has also raised alarms about fintech companies’ adherence to Know Your Customer (KYC) regulations. In April 2024, the central bank imposed a two-month ban on customer onboarding for several fintech firms, including Kuda Bank and Palmpay, citing KYC non-compliance. This ban forced companies to overhaul their onboarding processes and improve compliance measures.
Moniepoint declined to comment on the matter. However, OPay issued a statement strongly refuting the claims of a ₦1 billion 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,” the company said. “These claims are entirely false.”
The Central Bank of Nigeria did not respond to requests for comment.
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