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09-May-2025

Fintech

Nigeria’s Fintech Giants Face Hefty Fines as CBN Tightens Regulatory Grip 6 hours ago

By Princewill Onyekachi, Lagos – May 9, 2025

Nigeria’s booming fintech sector, a beacon of innovation and financial inclusion across Africa, is navigating turbulent waters as the Central Bank of Nigeria (CBN) intensifies its regulatory oversight. In a series of unprecedented moves, the apex bank has imposed substantial fines on some of the country’s leading fintech companies, including Paystack, Moniepoint, and OPay, for alleged breaches of compliance protocols. The fines, totaling over ₦2.25 billion, signal a new era of scrutiny for an industry that has transformed how millions of Nigerians access financial services.

The CBN’s latest enforcement actions, announced in late April 2025, targeted Paystack with a ₦250 million penalty for operating its consumer app, Zap, outside the scope of its approved payment service license. Moniepoint and OPay, two of Nigeria’s largest digital banking platforms, each faced steeper fines of ₦1 billion following audits that uncovered lapses in Know Your Customer (KYC) procedures and anti-fraud measures. According to a CBN spokesperson, the penalties aim to “ensure the integrity of Nigeria’s financial ecosystem and protect consumers from systemic risks.”

The fintech sector, which grew by an impressive 70% year-over-year in 2024, has been a cornerstone of Nigeria’s digital economy, attracting 36% of Africa’s fintech equity funding between 2020 and mid-2024. Companies like Paystack, Moniepoint, and OPay have revolutionized payments, lending, and savings for millions, leveraging Nigeria’s 87% mobile penetration to bridge gaps left by traditional banks. However, rapid growth has brought challenges, including rising incidents of fraud, money laundering, and unlicensed operations, prompting the CBN to adopt a stricter stance.

Industry experts view the fines as a double-edged sword. “The CBN is sending a clear message that compliance is non-negotiable,” said Tunde Adebayo, a Lagos-based fintech consultant. “While this protects consumers, it could strain smaller players and deter investors if enforcement feels overly punitive.” Paystack, in a public statement, acknowledged the fine and pledged to align its operations with regulatory requirements, emphasizing its commitment to transparency. Moniepoint and OPay have similarly vowed to address the CBN’s concerns, though both declined to comment on the financial impact of the penalties.

The regulatory crackdown follows earlier measures in April 2024, when the CBN temporarily barred fintechs like OPay, Kuda Bank, Moniepoint, and PalmPay from onboarding new customers due to inadequate KYC processes. The directive, coupled with the freezing of 105 accounts linked to illicit activities, underscored the government’s focus on curbing financial crimes. “Nigeria’s fintechs are at a crossroads,” said Chika Nwosu, a financial analyst. “They must balance innovation with robust compliance to maintain trust and sustain growth.”

For consumers, the implications are significant. Platforms like OPay and Moniepoint have become lifelines for millions of unbanked Nigerians, offering seamless mobile transfers and digital wallets. However, heightened regulations could lead to stricter account verification processes, potentially slowing user onboarding. “I rely on OPay for my business transactions,” said Aisha Ibrahim, a small-scale trader in Abuja. “I hope these fines don’t disrupt the services we depend on.”

As Nigeria’s fintech sector braces for further regulatory developments, stakeholders are calling for dialogue between the CBN and industry players to foster a balanced ecosystem. “Collaboration is key,” said Adebayo. “Fintechs need clear guidelines, not just penalties, to thrive sustainably.” With the sector poised for continued growth, the coming months will test its ability to adapt to an increasingly stringent regulatory landscape while maintaining its transformative impact on Nigeria’s economy.

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