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Flutterwave Secures Nigerian Banking License to Capture Multi-trillion Naira Market

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Flutterwave Inc., an African payments technology company, has officially secured a Nigerian banking license. This critical regulatory approval enables the company to hold funds and deposits directly, significantly strengthening its financial infrastructure across its largest market.

Breaking the sponsorship model
Olugbenga ‘GB’ Agboola, founder and CEO of Flutterwave

Historically, global payment companies operating in the region have relied heavily on a “sponsorship” model, partnering with established commercial banks to access national clearing and settlement systems. While functional, this arrangement often limits a fintech’s pace of innovation and requires them to share a portion of the transaction value with the sponsoring institution.

By securing its own banking license, Flutterwave gains far greater control over how funds move within its ecosystem. While the company will continue to work closely with banking partners across the broader financial ecosystem, the license enables Flutterwave to internalize key elements of its financial value chain. This shift strengthens the firm’s operational autonomy, improves efficiency, and allows it to capture more value from the transactions processed on its platform.

Olugbenga Agboola, founder and CEO of Flutterwave, highlighted the strategic importance of the move.

“This milestone allows us to make our infrastructure more efficient and deliver faster, more reliable financial services,” Agboola stated. “By operating directly within the financial system, we can streamline money movement, accelerate settlement for merchants, and build products that support sustainable long-term growth.”

A new generation of banking infrastructure

The license allows Flutterwave to tap directly into Nigeria’s dynamic financial ecosystem, a market where trillions of naira move through digital payment channels each year. The company plans to leverage its new operational autonomy to roll out enhanced integrated financial solutions:

  • SendApp Users: Over a million people using the SendApp remittance solution will gain access to enhanced financial services, including personal account numbers and instant transfers, without needing to switch apps.

  • Flutterwave for Business: Over two million businesses can now directly open accounts, manage payouts, run payroll, and access multi-currency capabilities.

  • Smart Financial Tools: The fintech will introduce data-driven financial services, including working capital financing and merchant lending powered by real transaction data, alongside dedicated treasury and savings products.

Celebrating a decade of growth

As Flutterwave marks its tenth year of operations in 2026, the company continues to build on a massive foundation of scale. To date, the fintech has processed over $40billion in payments and enabled more than one billion unique transactions.

This latest regulatory milestone follows Flutterwave’s acquisition of open banking startup Mono, a move that previously strengthened the company’s financial connectivity infrastructure. Looking ahead, the firm confirmed it is exploring new technologies, including stablecoin-enabled settlement, to further connect African businesses to the global economy.

ECB Backs Plan for ESMA to Take Over Crypto Supervision

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The European Central Bank has supported the European Commission’s plan to bring the supervision of major crypto companies under the EU’s financial markets regulator. 

The ECB said in an opinion published on Friday that it fully supports bringing oversight of systemically important cross-border capital market companies, such as large trading platforms and crypto companies, under the European Securities and Markets Authority (ESMA).

The central bank said the proposals “constitute an ambitious step towards deeper integration of capital markets and financial market supervision within the Union.”

The opinion is nonbinding, but it will still be a major boost to the plan, which is set to be the most significant overhaul of how the EU will regulate crypto companies since the Markets in Crypto-Assets (MiCA) laws started to come into force in mid-2023.

Under MiCA, crypto-asset service providers, or CASPs, are allowed to operate under the supervision of an EU member country’s regulator to serve the entire bloc, with ESMA setting some standards and guidelines.

That has allowed crypto companies to pick favorable jurisdictions to get licensed, with Kraken setting up its EU arm in Ireland, while Coinbase and Bitstamp chose Luxembourg. Bitpanda set up in Austria, while its EU asset management arm chose to be licensed in Germany.

Some countries, including the popular MiCA licensing hub of Malta, have pushed back against the plan, calling it premature, arguing that the MiCA laws for CASPs only came into force in December 2024.

Related: Centralizing crypto: Why Malta’s clash with ESMA is about more than one small state

The ECB said that “transferring authorisation, monitoring and enforcement powers for all CASPs” from national regulators to ESMA would “ensure supervisory convergence, reduce fragmentation and mitigate cross-border risks in crypto-asset markets, thereby supporting financial stability and the integrity of the single market.”

An excerpt of the ECB’s opinion saying it supports taking over supervision from national competent authorities (NCAs). Source: ECB

It noted that banks are increasingly linking with crypto companies by offering crypto services to customers or by servicing crypto companies, which it argued could transmit “shocks into the financial system” from crypto.

The ECB added that the trend underscored “the need for a centralised Union supervisory regime for CASPs, capable of addressing the systemic risks posed by CASPs with significant activities, preventing risk migration into the banking system and safeguarding financial stability.”

The central bank said that ESMA would need to be given sufficient funding and staff if it were to take on the responsibility of directly policing crypto companies.

The plan is likely still months away from becoming law, as EU lawmakers and governments will negotiate the proposal before the European Parliament takes further action.

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