Africa’s payments giant Flutterwave has received regulatory approval in Nigeria to operate a microfinance unit. This significant development will enable the company to expand its services into lending and holding deposits on behalf of customers, areas previously outside its operational domain.

The approval marks a milestone for Flutterwave, which has established a strong reputation in payments, cross-border money transfers, switching, and card processing over its decade of operation. The company's founder and CEO, Olugbenga Agboola, stated that this move will make their infrastructure more efficient and deliver faster, more reliable financial services.

By operating directly within the financial system, Flutterwave aims to streamline money movement, accelerate settlement for merchants, and build products that support sustainable long-term growth. The permit grants Flutterwave greater flexibility to oversee fund flows and earn more value by handling transactions independently, without relying on commercial banks.

Flutterwave, recognized as Africa’s most valuable startup, will now contend with established players like Moniepoint, which achieved unicorn status in October 2024, and PalmPay, noted as Africa’s second fastest-growing company in 2025. Moniepoint recently acquired Orda Africa and a 78% stake in Sumac Microfinance Bank in Kenya.

The Nigerian fintech landscape is increasingly competitive, with digital banks disrupting traditional banking. Moniepoint reportedly processes 26 million payments daily for over 10 million users, while PalmPay handles 15 million transactions daily with 35 million users. Major telecommunication companies like MTN Nigeria and Airtel have also entered the market with their payment units, MoMo PSB and SmartCash, respectively.

A report by Moniepoint highlighted that over 27,000 clubs, bars, and lounges processed three transactions per second across its network. Flutterwave’s planned initial public offering received a boost in January 2026 after acquiring Mono Technologies Nigeria Limited, a pioneer in open banking infrastructure in Africa. The company expects Mono’s infrastructure to enhance its transition into a full-stack financial data and infrastructure company, a prerequisite for listing on the Nigerian Exchange and NASDAQ.