Nigeria’s financial landscape is set for a major shake-up following the Central Bank of Nigeria’s decision to upgrade Opay to national status, a move that significantly expands the fintech company’s operational scope.
With the new licence, Opay is now permitted to establish physical offices across all states of the federation, signaling its compliance with the ₦5 billion minimum capital requirement mandated by the CBN.
The upgrade also brings notable changes for customers. Opay accounts can now be used as salary accounts, while their statements of account are officially recognized for international travel and visa applications, placing the fintech closer to mainstream banking use than ever before.
However, clear limits remain. Unlike traditional commercial banks, Opay will not accept cash deposits at its offices, issue cheque books, or offer some services long associated with deposit money banks such as UBA, Access Bank, First Bank, and Zenith Bank. Analysts note that despite the upgrade, a substantial gap still exists between fintech banks and full-service commercial banks.
Opay is not alone in this regulatory advancement. Other fintech players, including PalmPay, Kuda, Moniepoint, and several others, have also received similar national upgrades, intensifying competition within Nigeria’s banking sector and raising questions about the future dominance of traditional banks.
As fintechs continue to close the gap with conventional institutions, are Nigeria’s traditional banks prepared for the heightened competition this year?
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