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The Central Bank of Nigeria (CBN) has levied ₦1 billion fines on leading fintech firms Moniepoint and OPay as part of its intensified oversight of the sector. According to sources familiar with the development, the fines were issued in the second quarter of 2024 following a comprehensive audit of the fintech industry. While other companies were also penalized, Moniepoint and OPay faced the steepest penalties.
The audit reportedly uncovered compliance issues, a routine finding during CBN’s regulatory checks of financial institutions under its jurisdiction. At least four additional fintech firms were fined, but specific details regarding these penalties remain undisclosed.
The CBN has increasingly turned to fines as a tool for enforcing compliance. In 2023, banks in Nigeria paid a cumulative ₦678 million in penalties. More recently, in October 2024, the CBN and the Securities and Exchange Commission (SEC) imposed a ₦15 billion fine on ten commercial banks, including Zenith Bank and GTBank, for infractions in the first half of the year.
Nigeria’s fintech sector, once known for its relative independence from regulatory intervention, has come under greater scrutiny as it grows. Firms like OPay, with a reported 40 million users, and Moniepoint, which processed 5.2 billion transactions in 2023, have expanded rapidly. However, this growth has raised questions about the adequacy of their regulatory frameworks.
One key issue involves the use of microfinance bank licenses by fintech firms like Moniepoint and OPay. Originally designed to support small and medium enterprises, these licenses have enabled significant expansion but are now being scrutinized for their suitability in protecting the millions of customers these firms serve.
The CBN has also highlighted concerns over compliance with Know Your Customer (KYC) regulations. Earlier in April 2024, the central bank imposed a two-month ban on customer onboarding for fintechs such as Kuda Bank and Palmpay, citing inadequate KYC compliance. This prompted affected firms to overhaul their onboarding processes and strengthen compliance measures.
Moniepoint declined to comment on the fines, while OPay categorically denied the allegations in a statement to TechCabal, saying, “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 Central Bank of Nigeria has yet to respond to inquiries regarding the matter.
