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In 2026, Mobile Money Operators (MMOs) like OPay, PalmPay, and MTN MoMo have become the primary financial touchpoints for millions of Nigerian SMEs. To ensure the stability of this ‘Shadow Banking’ sector, the CBN introduced the 2026 Framework for Mobile Money Services. For small merchants, this means faster settlements but stricter identity verification.
The ‘Merchant-Only’ Wallet Tier
In 2026, you can no longer use a personal wallet for high-volume business transactions. The CBN now mandates a ‘Merchant Tier’ for any account processing over ₦500,000 monthly. This tier requires a Tier-3 KYC profile, including a valid TIN and business address verification. Failure to upgrade leads to an automatic freeze once you hit the limit.
2026 Mobile Money Limits:
- Daily Transaction Limit: ₦5,000,000 for verified merchants.
- Balance Limit: Unlimited for ‘Merchant Tier’ users.
- Cash-Out Fee: Capped at 0.5% by the CBN to protect SME margins.
Electronic Payment Compliance
Merchant wallets are now integrated with the 0.5% Cybersecurity Levy. However, transfers between two merchant wallets (B2B) are often eligible for ‘Trade Exemptions’ if correctly tagged. Ensure you are following the electronic payment compliance checklist to avoid double taxation.
Step-by-Step: Staying Compliant as an MMO Merchant
- Upgrade to Merchant Status: Don’t wait for a freeze; upload your CAC documents to your app today.
- Link Your TIN: The FIRS now tracks MMO volumes for tax assessment.
- Separate Personal and Business: Use a personal wallet for ‘pocket money’ and a merchant wallet for ‘inventory’ to simplify your financial reporting.
- Daily Reconciliation: Use the app’s ‘Export CSV’ feature to match your daily sales with your bank deposits.
Practical Example: The Market Trader
‘Mama Tunde’ runs a wholesale shop in Onitsha. In 2025, she used her personal MoMo account. In early 2026, her account was flagged for ‘unusual volume.’ After upgrading to a Merchant Tier and linking her TIN, her daily limit was increased to ₦10 million, allowing her to pay her suppliers instantly without the ‘unverified’ flags that used to delay her goods.
External Resources
Check the list of licensed MMOs at the Central Bank of Nigeria. For merchant tools, visit OPay’s Business Portal.
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