Kuda Microfinance Bank has announced plans to open more experience centres across Nigeria following its approval by the Central Bank of Nigeria to operate as a National Microfinance Bank. The new licence allows the digital lender to expand its physical presence nationwide, with a stronger focus on customer support and community engagement.
The upgrade removes the geographic limits attached to Kuda’s former unit microfinance bank licence. Although Kuda has always operated as a digital bank, the earlier licence restricted where it could establish physical offices. With the national licence, the bank is now required to extend its physical footprint, while still keeping digital banking at the heart of its operations.
Commenting on the development, Kuda’s Managing Director and Chief Executive Officer, Musty Mustapha, described the licence as a major milestone for the institution. He said the approval reflects Kuda’s growth as a regulated financial institution and provides the flexibility to better serve customers who need in person assistance alongside digital services.
Kuda’s licence upgrade is part of a wider regulatory move by the Central Bank of Nigeria to align licences with the scale of operations of fast growing fintech companies. In January twenty twenty five, the apex bank also upgraded the licences of other major players such as Moniepoint and Opay. The regulator said the decision was aimed at ensuring that customers, many of whom operate in the informal sector, can access physical offices across the country to resolve complaints.
The new status places higher obligations on Kuda, including stricter regulatory oversight, expanded disclosure requirements and a significantly higher capital base. As a national microfinance bank, Kuda’s minimum paid up capital requirement rises to five billion naira. The licence also requires national microfinance banks to publish their annual accounts in national newspapers for transparency and accountability.
Despite the changes, Kuda said it will continue to prioritise its digital services such as transfers, payments, savings and instant credit. In the first quarter of twenty twenty five, the bank processed over three hundred million transactions valued at fourteen point three trillion naira and issued overdrafts worth sixteen point four billion naira. The company added that all physical expansions will be carried out with regulatory approval, in line with Central Bank guidelines.