Toba Owojaiye reporting
Abuja, Nigeria
The Central Bank of Nigeria (CBN) has imposed hefty fines of ₦1 billion each on two leading fintech companies, Moniepoint and OPay, following an extensive audit of the sector in the second quarter of 2024. This move 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.
Truth Live News gathered that the fines stem from a routine regulatory audit conducted by the CBN, which reportedly uncovered lapses in compliance. While specific infractions 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 faced penalties, although details of their fines are yet to be disclosed. 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, highlighting 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 argue 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.
Moniepoint has so far declined to comment on the fines. In contrast, OPay has issued a strong denial. “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 stated. “These claims are entirely false.”
The CBN has yet to issue an official statement on the matter.
The fines reflect the tightening regulatory environment for Nigeria’s fintech sector, which has enjoyed rapid growth but now faces the challenge of navigating stricter oversight. While the industry has been instrumental in driving financial inclusion, experts warn that inadequate regulation could pose risks to customer funds and the stability of the financial system.
As Nigeria’s fintech ecosystem continues to evolve, the CBN’s actions highlight the delicate balance between fostering innovation and ensuring compliance. While the penalties signal a commitment to regulatory enforcement, they also underscore the need for clearer guidelines tailored to the unique dynamics of fintech operations.
The developments are likely to prompt industry players to reassess their compliance strategies and adapt to the changing regulatory landscape. For customers, the increased scrutiny may ultimately translate into better protections and more transparent operations.