In a recent development, the Central Bank of Nigeria (CBN) has taken decisive action by prohibiting mobile money operators, including prominent fintech companies such as OPay, Palmpay, Kuda Bank, and Moniepoint, from onboarding new customers. This decision comes amidst reports indicating that these fintech firms’ accounts were allegedly being exploited for illicit foreign exchange transactions.
Although there has been no official circular issued by the apex bank regarding this matter, a source within the institution confirmed the directive.
In a related development, Justice Emeka Nwite of the Federal High Court Abuja has granted an interim order to the Economic and Financial Crimes Commission (EFCC) to freeze 1,146 bank accounts linked to individuals and companies under investigation for various alleged offences. These offences include unauthorized dealings in foreign exchange, money laundering, and terrorism financing.
The court order mandates the freezing of these accounts pending the conclusion of investigations, emphasizing the importance of preserving the funds during the investigative process.
The affected fintech companies represent a significant segment of Nigeria’s burgeoning digital financial services sector. The CBN’s decision to halt their onboarding of new customers underscores the regulatory authority’s commitment to maintaining the integrity and stability of the nation’s financial system.
This regulatory action aligns with broader efforts by Nigerian regulatory bodies to combat financial crimes and ensure compliance with established regulatory frameworks. Recent regulatory interventions, including the deregulation of prepaid meter prices by the Nigerian Electricity Regulatory Commission (NERC), and the CBN’s imposition of restrictions on certain financial service providers, reflect the government’s proactive approach to addressing key economic challenges.
