CBN imposes N2bn fine on Moniepoint, OPay amid increased fintech scrutiny

The Central Bank of Nigeria (CBN) has fined two of the country’s leading fintech unicorns, Moniepoint and OPay, a combined total of N2 billion (N1 billion each), in response to regulatory non-compliance uncovered during a routine audit in the second quarter of 2024.

This move is part of the CBN’s ongoing effort to tighten oversight over the rapidly expanding fintech sector.

According to sources familiar with the matter, the fines were part of broader penalties imposed on several other fintech firms, though details of those fines remain undisclosed. The penalties come as the CBN increases scrutiny of fintechs, many of which, including Moniepoint and OPay, now serve millions of users.

Moniepoint, which processed 5.2 billion transactions in 2023, and OPay, with a reported customer base of approximately 40 million, have seen rapid growth, leading to heightened regulatory attention. Both companies, like several other fintechs, operate under microfinance bank licenses, originally designed for small and medium enterprises. This has raised concerns about whether the current licensing framework is adequate to protect customers effectively, given their large scale.

The CBN’s increasing reliance on fines to enforce compliance is evident from the penalties levied on Nigerian banks in 2023, totaling N678 million, and the N15 billion fine imposed on ten commercial banks, including Zenith and GTBank, in October 2024.

Another key area of concern for the CBN is fintechs’ adherence to Know Your Customer (KYC) processes. In April 2024, several fintech firms, including Kuda Bank and Palmpay, were banned from onboarding new customers for two months due to non-compliance with KYC standards, prompting an overhaul of their procedures.

While OPay has denied any such fine, calling the claims “entirely false,” Moniepoint has declined to comment. The CBN has not yet responded to requests for official comments on the fines or the broader regulatory scrutiny.