The Central Bank of Nigeria (CBN) has imposed heavy fines of ₦1 billion each on two leading fintech companies, Moniepoint and OPay. The fines were a result of an extensive audit of the sector in the second quarter of 2024, which uncovered inadequacies in compliance.
The CBN’s regulatory clampdown is aimed at ensuring that fintech operators align with established financial and operational standards. At least four other fintech companies were also sanctioned, although details of their fines have yet to be made available.
The fines imposed on Moniepoint and OPay are part of the CBN’s growing reliance on penalties to enforce compliance across the financial sector. In 2023, 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.
The CBN’s increased scrutiny of the fintech sector is largely due to the rapid expansion of companies like Moniepoint and OPay, which have brought them under closer regulatory attention. 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, which were originally designed to serve micro, small, and medium enterprises (MSMEs). Critics argue that this 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.
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