The Central Bank of Nigeria (CBN) has reportedly imposed N1 billion fines each on Moniepoint and OPay in the second quarter of 2024.
This follows a routine audit of fintech startups, which highlighted various compliance issues.
Sources with direct knowledge of the process revealed that the penalties were part of CBN’s ongoing scrutiny of the fintech sector.
The two leading firms, Moniepoint and OPay, were the hardest hit, although several other fintech companies also faced penalties, the details of which remain undisclosed.
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This increased regulatory oversight marks a shift in the CBN’s approach to the fintech space, which had previously seen limited intervention.
The growing scale of companies like OPay, with approximately 40 million users, and Moniepoint, which processed over 5.2 billion transactions in 2023, has raised concerns over the adequacy of their regulatory frameworks.
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One key issue is the companies’ use of microfinance bank licenses, originally intended to support small enterprises but now being utilized by fintech giants to cater to millions of customers.
This, coupled with concerns over Know Your Customer (KYC) compliance, has prompted the CBN to impose additional penalties, including a two-month ban in April 2024 on several fintechs for failing to meet KYC standards.
Despite the report, OPay has denied any wrongdoing, refuting the claims of the N1 billion fine.
Moniepoint, on the other hand, declined to comment on the matter.
