Nigeria's Kuda Bank Gets National License, Opens New Branches

One of Nigeria's fastest-growing digital banks just got the green light to serve customers nationwide, and it's bringing real-world support centers along for the ride.

Kuda Microfinance Bank received a national license from Nigeria's Central Bank in early 2025, lifting previous geographic limits that kept its physical presence restricted despite serving customers digitally across the country. The upgrade means Kuda can now open experience centers where customers can get face-to-face help while still enjoying the app-first banking that made the company popular.

"Securing a national microfinance banking licence is an important step for us as a regulated institution," said Musty Mustapha, Kuda's CEO. He emphasized that while the bank stays digital at its core, the new license gives them flexibility to meet customers however they prefer.

The timing reflects a broader shift in Nigeria's fintech landscape. In January 2025, the Central Bank upgraded licenses for major players including Moniepoint and Opay to match the massive scale of their operations. Moniepoint alone processes 433 million transactions monthly, while OPay serves over 10 million daily users.

The numbers behind Kuda's growth tell an impressive story. In just the first quarter of 2025, the bank processed over 300 million transactions worth $10.21 billion. It also issued $11.71 million in overdrafts, a 43% jump from the previous quarter.

The Ripple Effect

This license upgrade represents something bigger than one bank's expansion. Nigeria's Central Bank is recognizing that digital-first companies need physical touchpoints to truly serve everyone, especially the millions of informal sector workers who want the option to walk into an office when problems arise.

The change does come with traditional banking responsibilities. Kuda's minimum capital requirement jumped from about $143,000 to $3.57 million, and the bank must now publish annual accounts in national newspapers for transparency. Opening new branches requires regulatory approval, with $1,428 fines for unauthorized locations.

But for customers, this evolution means getting the best of both worlds: lightning-fast digital banking with real human support when they need it. As fintech matures in Africa's largest economy, the future looks less like choosing between digital or physical and more like blending both seamlessly.

Kuda plans to roll out multiple experience centers in the coming months, all subject to Central Bank approval.