Nigeria's apex bank, the Central Bank of Nigeria (CBN), is considering introducing a regional passport for fintech firms planning to expand across Africa. A 2025 CBN report, titled "Shaping the Future of Fintech in Nigeria: Innovation, Inclusion and Integrity," revealed the apex bank's plans for the fintech industry. The bank, according to the report, is exploring regulatory passporting frameworks involving bilateral agreements with partner countries, such as Ghana, Kenya, and South Africa. " A majority of respondents view regional expansion as essential to achieving scale and sustaining business viability,” the report, which followed an industry survey, notes. " 62.5% of respondents currently operate or plan to expand into other African markets, with ambitions to position Nigeria as a regional hub for digital financial services." The collaboration between the CBN and the partner countries allows for mutual recognition of licenses and a harmonised regulatory framework across African jurisdictions. What does it mean for fintech? The initiative means that Nigerian fintech firms planning to expand across Africa can do so smoothly, with reduced compliance costs and less time, adding to the growth and maturity of fintech in Africa. The CBN plans to float these passporting arrangements with select peer regulators in the West African sub-region and other central African fintech hubs. The CBN is feeling very confident following Nigeria's exit from the FATF "Grey" list. It believes its regulatory framework is robust enough to be exported across other jurisdictions, hence the regional passport initiative. Consolidated licenses for digital banks The report also reveals a shift in the CBN's focus from propping up Payment Service Banks (PSBs) to issuing consolidated licenses to digital banks. The move is informed by the need to provide a scalable path for fintechs to offer inclusive credit and savings services. The initiative is coming barely a week after Opay, Moniepoint, and Palmpay were upgraded to national bank status and received subsequent licenses. This development marks the first practical implementation of the policies outlined in the CBN Fintech Report 2025, where the bank argues that regulation must now align with operational reality. The apex bank aims to launch a Fintech Engagement Forum and implement an open banking roadmap within the next three months. This adds to other key reforms under Governor Olayemi Cardoso, such as the bank recapitalisation and the cleanup of the FX scene.
