CBN licences in Nigeria: types, costs & what fintechs should know

If you’re building a fintech startup in Nigeria, one of the first things you’ll need to figure out is this: what CBN licences do we need to operate legally, and how much will it cost?

Whether you plan to launch a digital wallet, a mobile money app, a savings platform, or a full-scale digital bank, the Central Bank of Nigeria (CBN) requires you to be licenced. And not just any licence. The type you apply for depends on your services, how you move money, and whether you’re holding customer funds.

This guide breaks everything down clearly. You’ll learn:

• The different types of CBN licences available
• What each licence allows you to do
• The capital requirements and actual costs involved

So, what kind of licence does your startup need? Let’s find out.

The main types of fintech CBN licences in Nigeria

Before investing time or money into your fintech product, you must know what licence aligns with your services. Below are the main types of licences issued by the CBN, what they’re used for, and the kinds of startups that apply for them.

We’ve also included capital requirements, so you know what to expect upfront.

1. Switching and Processing Licence

• Who needs this: Companies that process payments, settle transactions, or serve as payment gateways (e.g., Paystack, Flutterwave).
• What it allows you to do: Transaction switching, card processing, clearing, and settlement services.
• Minimum capital: ₦2 billion
• Other requirements are PCI-DSS certification, a disaster recovery plan, risk frameworks, and agreements with banks or merchants.
• Application fee: ₦100,000 (non-refundable)
• CBN deposit (escrow): ₦2 billion (returned after the licence is issued)

Is your startup building infrastructure that connects banks, wallets, and payment platforms? Then this is likely the licence you need.

2. Mobile Money Operator (MMO) Licence

• Who needs this: Wallet-based platforms that allow users to store and transfer funds (e.g., Paga, OPay).
• What it allows you to do: Offer wallets, send/receive money, pay bills, and more.
• Minimum capital: ₦2 billion
• CBN deposit (escrow): ₦2 billion
• Other requirements: 5-year business plan, KYC/AML procedures, data protection policies, and agreements with telcos or banks.

Planning to run a mobile wallet or build a money transfer app? This licence is mandatory.

3. Payment Solution Service Provider (PSSP) Licence

• Who needs this: Gateways and APIs that facilitate online transactions for other businesses (e.g., Remita).
• It allows you to provide backend services for payment processing between banks, merchants, and consumers.
• Minimum capital: ₦100 million
• Escrow deposit: ₦100 million
• Extra requirements: Card security certifications, partner agreements, robust IT, and risk policies.

If your startup supports merchants with checkout systems or payment APIs, this is the licence for you.

4. Payment Terminal Service Provider (PTSP) Licence

• Who needs this: Companies that manage and distribute POS terminals.
• It allows you to deploy and maintain point-of-sale devices across Nigeria.
• Minimum capital: ₦100 million
• Escrow deposit: ₦100 million
• Key requirements: PCI-DSS/PA-DSS compliance, draft technical agreements, and a detailed project rollout plan.

Does your business manage POS terminals or build POS solutions? You’ll need this licence before you expand.

5. Payment Service Bank (PSB) Licence

• Who needs this: Institutions focused on providing banking services to the unbanked and underbanked, often in rural areas.
• What it allows you to do: Accept deposits, transfer funds, operate savings products, and issue debit cards.
• Minimum capital: ₦5 billion
• Special requirement: At least 25% of banking agents must be in rural or underserved areas.

Thinking of launching a digital bank that targets financially excluded populations? This is your go-to licence.

6. Super-Agent Licence

• Who needs this: Platforms managing a network of smaller agents (not necessarily customer-facing).
• What it allows you to do: Create and manage an extensive agent network for financial services.
• Minimum capital: Varies (often ₦50 million+ depending on reach)
• Additional requirements: Operational structure, risk controls, signed agreements with agents and financial partners.

If you’re building a last-mile distribution model using field agents or kiosks, this licence gives you the legal framework to scale.

7. CBN Regulatory Sandbox

• Who needs this: Early-stage startups testing innovative ideas that don’t clearly fall under existing CBN licences.
• It allows you to test new financial products under CBN supervision without full licencing.
• Cost: No capital deposit required during testing
• Process: Application-based, with approval timelines of 45–60 business days

Still figuring out your model? The sandbox allows you to validate your idea before spending big on a licence.

CBN fintech licence summary table

Here’s a quick table showing the most common fintech CBN licences in Nigeria, their use, and the capital required.

What does it cost to get a CBN fintech licence?

Getting a licence in Nigeria doesn’t just mean filling out forms and waiting for approval. It means spending real money. If you don’t budget properly, the process can stall or fail.

Let’s break down the actual costs you should expect.

1. Application fees

These are non-refundable and must be paid to start your licencing process.

• Depending on the licence, most application fees range from ₦100,000 to ₦500,000.
• Some licences, like Payment Service Banks, may require additional administrative or inspection fees during the review stage.

Tip: Don’t confuse this with the capital deposit. Application fees are paid upfront and are separate from your operational funds.

2. Capital requirements

This is where it gets serious.

• Switching/Processing and MMO: ₦2 billion (escrow deposit)
• Payment Service Bank (PSB): ₦5 billion
• PSSP and PTSP: ₦100 million
• Super-Agent: Varies, but often ₦50 million or more
• Digital banks: ₦2 billion+
• Microfinance banks: ₦20 million to ₦100 million (Tier-based)

These amounts are either:

• Held by the CBN during processing, then refunded
• Or required as minimum paid-up share capital, meaning you must own the funds and reflect them in your financial statements.

3. Legal, compliance, and consulting fees

You’ll likely need legal experts, compliance advisors, and sometimes former regulators to review your documents and structure.

• Expect to spend ₦2 million to ₦10 million on:
  • Legal counsel
  • Drafting partnership agreements
  • Developing KYC/AML policies
  • Reviewing tax and ownership documentation

This is one of the most underestimated costs. Cutting corners here could lead to rejection or delays.

4. Tech and operational costs

The CBN wants to see that you’re ready to operate. That means budgeting for:

• IT security tools
• KYC software
• Internal controls and monitoring
• Employee onboarding and training
• Data protection policies
• Physical office requirements (for on-site inspections)

Set aside ₦3 million to ₦10 million depending on your scale.

5. Annual renewal and compliance costs

Every licence must be renewed annually. Renewal fees are lower than your initial licence fee but still significant, often ₦1 million+, depending on the licence type.

You’ll also need to maintain:

• Monthly or quarterly compliance reports
• Regular audits
• Ongoing KYC and security upgrades

What affects the total cost of getting licenced?

Not all fintech startups will pay the same amount for licencing. Here are the key factors that determine how much you’ll need to spend:

1. Your business model

• Are you holding customer funds?
• Are you building infrastructure for others?
• Are you issuing cards, wallets, or running peer-to-peer services?

Each of these has different licence requirements. For example:

• A wallet app=MMO licence (₦2 billion)
• A card payment processor=Switching licence (₦2 billion)
• A savings and lending platform=Microfinance licence (₦20M–₦100M)

What core service are you offering? Start there and match it with the required licence.

2. The capital threshold

Some licences require paid-up share capital. Others require escrow deposits that you’ll get back.

Either way, it’s money that needs to be ready, traceable, and legally yours.

3. Compliance demands

The more sensitive the financial activity, the higher the scrutiny.

• Are you running identity checks?
• Are you preventing fraud?
• Are your customer records encrypted and secure?

You may need to invest in tools like:

• KYC/AML compliance software
• PCI-DSS certifications
• Internal monitoring systems

This adds both upfront and recurring costs to your budget.

4. Documentation quality

You’ll be asked for:

• A 5-year business plan
• Risk management framework
• Security and privacy policies
• Agreements with partners
• Board and shareholder documentation

Poor documentation can delay your application or lead to outright rejection. If your startup doesn’t already have these, expect higher consulting fees.

Final thoughts

You don’t need to guess your way through the CBN licencing process.

By now, you know the key licence types, how much they cost, and what it takes to get approved. You also know how to match your product to the correct licence and build a budget that won’t leave you stranded halfway.

If there’s one thing to take away, it’s this: getting licenced is not just a legal requirement, it’s a growth strategy. It shows investors, customers, and partners that you’re serious, compliant, and built for scale.

So, what’s your next move? If you know your product, match it to the correct licence. If unsure, start with a sandbox or consult a regulatory expert. And if you’re ready, start budgeting and building your application. Your fintech idea deserves to launch the right way.