LAGOS, April 2 – Flutterwave Inc., Africa’s most valuable fintech unicorn, has secured a national microfinance banking license in Nigeria, marking a significant expansion beyond its core payments business into lending and deposit-taking services.
The approval allows the company to operate as a microfinance bank, enabling it to offer savings accounts, hold customer deposits, and provide loans within regulatory limits. Previously, these services were delivered through partner banks, but the new license gives Flutterwave greater control over its financial ecosystem.
Chief Executive Officer Olugbenga Agboola said the move is aimed at strengthening reliability and deepening service offerings for customers. The company plans to roll out its microfinance operations this quarter, with initial offices in Lagos and Abuja, focusing primarily on small and medium-sized enterprises.
Flutterwave joins a growing list of global fintech firms such as Revolut Ltd. and Wise Plc that are pursuing banking licenses to accelerate growth and expand their service offerings.
The development reflects a broader shift in Nigeria’s financial landscape, where fintech firms have gained an edge over traditional banks in payment processing due to superior technology infrastructure. This dynamic has driven partnerships between banks and fintechs, allowing fintech companies to access customer bases while banks leverage digital capabilities.
Under Nigeria’s regulations, microfinance banks face lending limits tied to their shareholder funds and typically focus on micro-loans rather than large corporate financing. This aligns with Flutterwave’s initial strategy to support SMEs, a segment often underserved by traditional banking institutions.
Founded in 2016, Flutterwave operates in about 35 African countries, processes payments in over 30 currencies, and handles roughly 500,000 transactions daily. The addition of microfinance capabilities positions the company to evolve into a more integrated financial services platform, strengthening its role in Africa’s rapidly expanding digital economy.
