FinTech Licensing in Nigeria: CBN PSP Tiers, SEC Rules & Digital Lending Guidelines
Complete regulatory breakdown of Central Bank of Nigeria (CBN) payment service provider tiers, minimum capital requirements, SEC digital asset rules, and FCCPC lending frameworks.
Central Bank of Nigeria (CBN) Payment Licensing Framework
The CBN governs all payment systems under the Payments System Vision framework. FinTech companies operating payment processing, switching, mobile money, or merchant aggregation must obtain the appropriate category license.
| License Category | Permissible Activities | Minimum Capital (Shareholder Funds) |
|---|---|---|
| Switching & Processing | Switching, card processing, transaction clearing | ₦2,000,000,000 (₦2 Billion) |
| Mobile Money Operator (MMO) | E-wallets, cash-in/cash-out, domestic remittances | ₦2,000,000,000 (₦2 Billion) |
| Payment Solution Services (PSS) | Combines PISP, PTSP, and Super Agent authorizations | ₦250,000,000 (₦250 Million) |
| Payment Terminal Service Provider (PTSP) | POS terminal deployment, maintenance, support | ₦100,000,000 (₦100 Million) |
| Payment Solutions Service Provider (PSSP) | Payment gateway, web merchant acquiring, APIs | ₦100,000,000 (₦100 Million) |
| Super Agent | Agent banking network, cash distribution networks | ₦50,000,000 (₦50 Million) |
FCCPC Digital Lending Regulatory Framework
Under the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending (2022), all digital lending apps and online loan providers must secure mandatory registration approval from the Federal Competition and Consumer Protection Commission (FCCPC).
Operating an unregistered digital loan app in Nigeria leads to immediate app store delisting (Google Play Store and Apple App Store), payment gateway integration termination, and enforcement actions.
⚠️Consumer Data Protection Mandate
The FCCPC strictly prohibits digital lenders from contacting phonebook contacts of borrowers or harassing third parties. Breaching consumer privacy leads to immediate revocation of lending authorization and criminal referral.
Frequently Asked Questions
Common Founder Questions on Sector Licensing
Can a startup launch a payment service under a sandbox or partnership?▾
Yes. Early-stage FinTechs often partner with licensed commercial banks, microfinance banks, or licensed PSSPs through API sponsorship models or enter the CBN Regulatory Sandbox before acquiring their standalone license.