Fintech companies looking to expand into deposit-taking through microfinance bank acquisitions need to look beyond the licence and commercial opportunity, as the transaction can also bring a history of regulatory, governance and operational obligations.
Babatunde Akin-Moses, founder of Nigerian fintech Sycamore, made the point in a recent chat with Nairametrics.
He explained that Sycamore’s experience expanding into deposit-taking through an acquired microfinance bank reinforced the need for deeper due diligence when fintechs pursue acquisitions in the regulated financial sector.
Akin-Moses said acquiring a regulated institution means taking on its regulatory history, governance obligations, operational processes and other responsibilities, beyond its technology, customers or licence.
Akin-Moses said the experience reinforced his longstanding view that regulation should be treated as part of the business rather than something to address after building the company.
He said prospective buyers should not focus only on the licence or commercial opportunity when assessing a regulated institution.
Akin-Moses also advised prospective buyers to ensure that the regulator is appropriately carried along in the process.
Akin-Moses’ comments come against the backdrop of increased regulatory enforcement in Nigeria’s microfinance banking sector.
Akin-Moses told Nairametrics that the CBN’s actions across the microfinance banking sector also show the growing importance of regulatory compliance and institutional soundness as Nigeria’s financial system matures.
Akin-Moses did not attribute Sycamore MFB’s licence revocation to any specific factor.
Nigerian fintechs have increasingly moved beyond payments and lending to acquire or establish regulated financial institutions as they seek greater control over the financial services they provide.
The expansion has taken place alongside a more active regulatory environment for MFBs.
In January 2026, the CBN upgraded selected fintech and MFB licence holders with nationwide operations to national status, including Moniepoint MFB, OPay and Kuda, while stressing that institutions must meet regulatory benchmarks to qualify.
By July, the regulator had revoked the licences of 46 MFBs over regulatory and operational deficiencies.
Nigeria’s fintech sector continues to attract the largest share of startup investment, even as the funding environment becomes more selective and investors place greater emphasis on sustainable growth.
Nigerian startups raised $184.7 million across 51 deals in the first half of 2026, with fintech accounting for $98.5 million across 21 deals, or more than half of total startup funding during the period.
However, total funding increased only modestly from $178.3 million in the first half of 2025, while the number of deals fell from 63 to 51.
