Kuda: a digital microfinance bank in Nigeria

The account is held by Kuda Microfinance Bank Limited, which describes itself as a microfinance bank "duly licensed by the Central Bank of Nigeria". A microfinance bank is a bank under Nigerian law, with its own scope of activity and capital requirements; we classify it among licensed banks. The trademarks belong to Kuda Technologies Limited or to the bank.

In January 2026, according to the press, a Central Bank official stated that institutions such as Moniepoint MFB, OPay and Kuda had already been upgraded to national microfinance bank status, which aligns their licence with their nationwide activity.

The CBN register of institutions was not consulted. The terms and conditions mention an activity in the United Kingdom ("Kuda UK") without specifying its entity or status; it is not covered here.

According to the FAQ, you must be at least figure being updated, have an email address and a phone number, and confirm your BVN, which Kuda matches against the Central Bank's national database. Adding the NIN and a recent utility bill allows the account limits to be raised.

The FAQ does not address foreigners living in Nigeria or Nigerians in the diaspora. A foreigner must first obtain a BVN, a procedure not described here.

Kuda offers a branchless current account in naira, with a card, transfers, savings and credit; the FAQ mentions free transfers each month for accounts verified by BVN or NIN.

The exact number of free transfers, the card fees and the limits for each verification level are not stated as facts.

For microfinance banks, the NDIC deposit insurance limit was raised to up to 2,000,000¹ per depositor in 2024, according to the Nigerian press reporting the NDIC's announcement. Kuda states that its deposits are insured by the NDIC.

The Kuda FAQ consulted still mentions the limit that applied before the 2024 reform; it is not up to date. To our knowledge, the upgrade to national status does not change the coverage category, but this point has not been verified.

In 2024 the NDIC raised the limits for all categories of institutions (deposit money banks, microfinance banks, payment service banks) as well as the pass-through coverage for subscribers of mobile money operators. The limit therefore depends on the category of the institution holding the account, which makes the exact status of the entity decisive.

• Obtaining a BVN as a foreign resident.
• The applicable coverage limit, as Kuda's page is not up to date.
• The exact status of the licence (national or not) in the CBN register.
• Reporting obligations linked to your tax residence: a French tax resident must declare each year the accounts opened, held, used or closed outside France, including those with online banks and payment wallets; other countries impose comparable obligations.