Onome Amuge
When the Central Bank of Nigeria (CBN) approved Apices Finance Company Limited as a licensed finance company recently, the announcement drew little fanfare outside regulatory circles. Yet beneath the technical language of the apex bank’s correspondence lies a story of how Nigeria’s financial architecture is being reshaped and of the mounting pressure to bring millions of citizens and small firms into the credit economy.
Apices joins a small but growing cohort of licensed finance companies now operating under the Bank and Other Financial Institutions Act (BOFIA) 2020. Unlike deposit-taking banks, these institutions are designed to lend, lease, and provide non-deposit financial services to consumers and businesses. They fill a gap that has long dogged Nigeria’s economy: limited access to credit for small enterprises and retail customers, particularly outside the country’s major cities.
Daniel Odoviano Oniko, the managing director of Apices Finance Company, noted that the licence is more than a regulatory tick-box exercise. “Our vision is to champion financial excellence and empower Africa’s next generation of business leaders,” he said following the approval. With more than two decades in consumer, SME and corporate banking, Oniko has cast Apices as a vehicle for transforming small businesses and startups, often described as the lifeblood of the economy:.
The CBN’s decision comes against the backdrop of President Bola Tinubu’s reformist agenda, which has seen the removal of fuel subsidies, a partial liberalisation of the naira, and new commitments to support entrepreneurship. The regulator has repeatedly stressed the importance of diversifying Nigeria’s financial sector beyond traditional banking.
“This licence is granted subject to strict adherence to the provisions of the CBN Act 2007, BOFIA 2020, and rules and regulations issued by the bank from time to time,” stated Rita Sike, CBN’s director of financial policy and regulation, in the approval letter.
According to World Bank data, domestic credit to the private sector remains below 15 per cent of GDP, compared with an average of 45 per cent in Sub-Saharan Africa. Small businesses, which account for more than 80 per cent of employment, consistently cite access to finance as their biggest constraint.
In recent years, fintech lenders have proliferated, leveraging mobile technology to reach consumers directly. But their rapid rise has also raised concerns about predatory lending practices and data privacy breaches. By contrast, licensed finance companies operate under stricter oversight. Apices’ arrival suggests that investors see room for regulated entities to thrive alongside fintech disruptors.
Analysts assert that the credibility that comes with a CBN licence makes companies like Apices attractive, particularly if they can combine tech-enabled lending with regulatory compliance.
Oniko has repeatedly emphasised that Apices will focus on retail and small business clients. His stance mirrors the federal government’s rhetoric, which positions SMEs as a pillar of growth and job creation.
“My joy knows no bounds when Apices Finance Company Limited was approved by the Central Bank of Nigeria to operate as a finance company in Nigeria. Our vision is to champion financial excellence and empower Africa’s next generation of business leaders,” Oniko said.
But turning rhetoric into reality will not be easy. Industry analysts observed that SMEs often operate informally, with patchy bookkeeping and limited collateral. As a result, banks often remain reluctant to lend to them, citing high default risks. They added that finance companies like Apices will need to deploy alternative credit-scoring models, use technology to reduce costs, and strike partnerships with industry associations to mitigate risk.
The CBN, for its part, has not hidden its scepticism about weak governance in the financial sector. The licence approval warned that misrepresentation during the application process, or non-compliance with BOFIA, could lead to revocation. It also placed emphasis on due diligence for board and management appointments.
Such caution reflects past experience. Several finance companies collapsed in the 1990s and 2000s, often due to poor risk management and regulatory arbitrage. Today, the CBN is keen to avoid repeats.
Apices Finance must still notify the CBN of its official commencement date before it can begin operations. The company has not disclosed its initial capital base or its immediate lending targets, but industry observers expect it to start cautiously.
The CBN’s decision to licence Apices signals growing openness to alternative credit providers. But whether new entrants can bridge Nigeria’s gaping credit divide will depend on execution, governance, and the ability to reach beyond the financial elite.
