The Central Bank of Nigeria (CBN) has imposed fines of ₦1 billion each on fintech giants Moniepoint and OPay during the second quarter of 2024, as part of its increased regulatory scrutiny of the rapidly growing sector, according to sources cited by TechCabal.
The hefty penalties came after a routine audit of the fintech industry revealed issues with regulatory compliance. At least four other unnamed fintech companies were also fined, though the specifics of their penalties remain undisclosed.
The CBN has been ramping up its oversight of the burgeoning fintech space, which had previously operated with minimal interference. The meteoric rise of major players like OPay, with a reported 40 million customers, and Moniepoint, which processed over 5.2 billion transactions in 2023, has raised questions about the adequacy of existing regulatory frameworks, particularly for those operating under microfinance bank licenses originally meant for small businesses.
Compliance with Know Your Customer (KYC) requirements has emerged as a key concern for the CBN. Earlier this year, several fintechs, including Kuda Bank and Palmpay, faced two-month suspensions on customer onboarding due to KYC non-compliance and were required to overhaul their processes.
While Moniepoint declined to comment, OPay categorically refuted the claims of being fined ₦1 billion. The CBN has not yet responded to requests for comment.
The fines come amidst other regulatory changes impacting fintech customers, such as the recently introduced ₦50 charge on electronic money transfers of ₦10,000 and above. As the sector continues to expand, the CBN’s intensified oversight signals a new era of heightened scrutiny for Nigeria’s fintech industry.