Fintech License in Nigeria: How to Get a Fintech Company Licensed in Nigeria

Fintechs in Nigeria are changing how we conduct financial transactions. They offer greater ease and accessibility than traditional banks. 

It’s no wonder the fintech industry is gaining prominence in the nation. Reports from KPMG and PwC projected up to 25% growth in Nigeria’s fintech sector by the end of 2024.

Perhaps you just started a Fintech company and are wondering how to get a Fintech license in Nigeria. Welcome to the space where you’ll find answers to your questions.

Regulatory compliance is essential for your startup, and we’re glad you’re aware of that. So today, we’ll discuss some of Nigeria’s most important fintech licenses and how to get them. 

What is a Fintech Company?

A fintech company is an institution that leverages technology to provide innovative financial solutions to customers. 

Fintech companies provide services that include loans, virtual bank accounts, transfers, investment solutions, wealth management, financial advisory, saving opportunities, crowdfunding platforms, and tokens. 

There are currently several licensed fintechs in Nigeria, according to Federal Competition and Consumer Protection Commission reports.

By 2025, more Nigerians are expected to open bank accounts on fintech platforms. This is due to the easier accessibility and fewer technical requirements associated with fintech banking. 

Also read: Top 10 Nigeria FinTech CEOs in 2024

Features of Fintech Companies 

Fintech companies are often characterised by some key features, some of which are listed below:

• They are highly technology-based.
• They ease payments and other financial processes.
• Users are not subject to numerous requirements, an advantage to traditional banks.
• Because fintech companies leverage technology, they can meet the needs of a wider range of people: the young, the old, the poor, the jobless, the self-employed, etc. 
• Users can access products and services from their digital devices; it is easy and convenient. 

Comprehensive List of Fintech Licenses in Nigeria

Different licenses are required for fintechs in Nigeria. But you don’t need to acquire them all. The license you need depends on the type of Fintech you’re operating.

There are currently about seven types of fintechs in Nigeria. These include: 

• Payment Service Providers (PSP)
• Payment Service Banks
• Lending companies
• Blockchain companies
• Digital banks
• Robo-Advisory services
• Insurtech/Wealthtech 

Also read: Nigerian Fintech, Risevest Acquires Hisa, Kenyan Startup

Each of these categories may be further subdivided. PSP, for instance, has five sub-categories: 

• Switching and processing Operators 
• Mobile Money Operators
• Payment Terminal Services Providers (PTSPs)
• Payment Solution Service Providers (PSSP) 
• Super Agents

Below is a comprehensive list of fintech licenses in Nigeria: 

No	License	Issuing Body
1	Payment Solution Service Provider (PSSP license)	Central Bank of Nigeria (CBN)
2	Payment Service Provider license	CBN
3	Super-Agent license	CBN
4	Robo-advisory license	Securities and Exchange Commission
5	Payment Terminal Service Provider License	Nigerian Communications Commission
6	Regulatory Sandbox	CBN
7	Switching and Processing License	CBN
8	Mobile Money Operator License	CBN

How to Get a Fintech License in Nigeria

Now that you know all the licenses that apply to Fintechs in Nigeria, let’s discuss how to get a Fintech license in Nigeria.

This section will cover the step-by-step guide for securing a PSSP license, a lending license, and a Mobile Money Operator license, the most common fintechs in Nigeria. 

Also read: FlapKap, Egyptian Fintech, Raises $34 Million Pre-series A to Scale SME financing across MENA

How to Get a Fintech License in Nigeria—PSSP License

In this section, we’ll focus on the application process for a PSSP license. The application fee is ₦100,000, while the licensing fee is ₦1 Million. Follow the steps below to apply for a PSSP license in Nigeria:  

Step 1: Gather Relevant Documents

The first step is to gather all your necessary documents. The documentation for a PSSP license in Nigeria is extensive. These include: 

• Company Incorporation Certificate 
• Memorandum & Articles of Association
• CAC Application Status 
• Company TIN and Tax Clearance Certificate for the past three (3) years
• The company’s profile, board structure, number of employees and Organogram
• Active company address, email and mobile numbers
• BVN, CV, National ID of Board and top management team.
• Business Plan, Business Continuity Plan, IT policy, Enterprise Risk Management Framework and Dispute Resolution Framework
• Duly executed contracts with service providers 
• Procedures for KYC and AML/CFT compliance
• Fraud detection plan and standard of care
• Consumer Protection Policy and Procedure Board Approval
• Payment Card Industry Data Security Standard Certification
• Payment Application Data Security Standard Certification
• Payment Terminal Service Aggregator Certification

Also read: Key Fintech Trends in Nigeria from 2024 and the Outlook for 2025

Step 2: Make Your Application 

Next, take actionable steps to enter your application. Here’s what you need to do: 

• Send an application to CBN for the grant of a PSSP license, along with a Memorandum of Association and the name of the company
• Pay the application fee
• Wait for CBN to review your application within 90 days
• Pay the final license fee after the application has been approved. 

How to Get a Fintech License in Nigeria—Lending License

Lending Fintechs offer quick loans to customers without the complexities of traditional banking.

Some top digital money lenders in Nigeria as of 2024 are Renmoney, Moniepoint, Okash, and Opay. 

If you’re planning to start a lending fintech company in Nigeria, you need a microfinance bank license from CBN. Here’s how to go about it: 

1. Register the company with CAC
2. Apply to start a microfinance bank at a Magistrate court in the company’s state of operation.
3. Pay the licensing fee
4. Apply to the Commissioner of Police at the company’s state of operation 
5. Apply to CBN for a microfinance bank license.

Also read: African Fintech Growth Opportunities, Especially in South Africa

How to Get a Fintech License in Nigeria—Mobile Money Operator License

The CBN Guidelines 2021 states that any Mobile Money Operator (MMO) in Nigeria must have a Payment Service Holding Company (PSHC) in place. 

The PSHC is to act as the holding company, with two subsidiaries: the MMO and a switching and processing company.

The minimum share capital of the PSHC is ₦2 billion. After structuring a PSHC, follow the steps below to obtain an MMO license:  

1. Apply to CBN for the grant of a license. The application should be addressed to the Director of the Payments System Management Department and accompanied by supporting documents. 
2. Pay the application fee of ₦1 million. 
3. Wait for CBN to review your application within 90 days. If your application is approved, CBN will grant you an Approval in Principle (AIP)
4. After six (6) months, the PSHC promoters will apply to CBN for the final MMO license.
5. Pay the licensing fee of ₦5 million
6. Wait for CBN to review your application within 90 days. 

Advantages of Obtaining a Fintech License in Nigeria 

Getting licenses for fintechs in Nigeria can be a long process. However, it is necessary because you will enjoy the benefits in the long run.

Below are some advantages of getting a license for your Fintech in Nigeria: 

• Investors take your company more seriously when it is licensed. 
• A licensed company opens up more opportunities for grants
• A licensed company strengthens customers’ trust. 
• Having a license reduces risks and sets up legal support for times when you need it  
• Getting your fintech license keeps you from being sanctioned by the federation or the state. 

Frequently Asked Questions

Conclusion: Provide Financial Solutions with Technology 

Fintechs in Nigeria are an integral part of the financial space. They make it easier for customers to loan money, make transfers and perform other transactions. 

So, starting a fintech company would be highly welcome in Nigeria. Now that you know how to get a fintech license in Nigeria, you can provide financial solutions while being legally compliant. 

Follow us on X, formerly Twitter,@SiliconAfriTech for more updates.

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References 

• Benjamindada.com – The Requirements to Get a Fintech-related License in Nigeria 
• Linkedin.com – Understanding the Various Types of Fintech Companies in Nigeria by Itunuoluwa Awolu
• 618bees.com – Obtaining a Mobile Money Operating License in Nigeria