Congratulations to the new Kuda “National Microfinance Bank”. It has officially “levelled up” its banking license from a local (unit) license to a National Microfinance Bank license.
In Nigeria, there are over 720 licensed Microfinance Banks, but only 9 (including the newly upgraded ones) hold a National License. By making this move, Kuda is joining an elite top tier that represents less than 2% of the microfinance sector.
Until now, Kuda’s license has technically limited it to a single physical office (though you can use the app anywhere). With this new national license, they are now legally allowed (and expected) to open physical branches or “experience centres” across all 36 states in Nigeria.
If you have an issue you can’t resolve in the app, you will soon be able to walk into a physical location and talk to a human being. This upgrade is a “stamp of approval” from the Central Bank of Nigeria (CBN), showing that Kuda is now a major, nationwide player.
Kuda by the Numbers
Kuda has a substantial customer base with over 7 million registered users. In the first quarter of 2025, it processed more than 300 million transactions valued at ₦14.3 trillion. Additionally, Kuda’s revenue in Nigeria nearly doubled in 2024 to ₦21.2 billion, indicating that the company has outgrown the “Unit MFB” category.
While this is a win, it comes with much tougher rules:
- More Money Required: Kuda had to increase its “savings account” with the government (minimum capital) from ₦200 million to ₦5 billion.
- Heavier Paperwork: They now have to follow stricter rules, such as publishing their financial accounts in national newspapers every year.
- Higher Expenses: Building offices and hiring branch staff are expensive, testing their “digital-only” low-cost model.
Kuda isn’t alone. Other major fintechs, like OPay and Moniepoint, also received this upgrade. The CBN is basically saying, “You guys have become too big to just be ‘app-only’ banks. You need to have real offices so that every day Nigerians have a place to go if something goes wrong.”
The Financial Inclusion Gap
Recent data show that 45% of Nigerians use digital financial services, but over 40% of adults remain excluded from the formal banking system. The CBN’s push for physical offices is a strategic move to capture the informal sector, where trust is built through face-to-face interaction rather than just an app interface.
Kuda is still a digital bank at its core, but it’s becoming more like a “traditional” bank by adding physical offices to serve customers better nationwide.
