Concerns abound among bank customers as the Central Bank of Nigeria (CBN) prohibits mobile money operators and fintech firms from enrolling new customers.
This directive has left many anxious about the safety of their funds and the integrity of these platforms. Despite the apprehension, the Bank Customers Association of Nigeria has thrown its weight behind the CBN’s decision, citing the need for stringent regulations to maintain the integrity of financial institutions.
The prohibition affects fintech giants such as OPay, Palmpay, Kuda Bank, and Moniepoint, preventing them from opening new accounts until further notice. Sources within these fintech companies, who preferred anonymity due to restrictions, confirmed the development on Monday.
The CBN’s move comes amid an ongoing audit of the Know-Your-Customer (KYC) process of fintechs, driven by concerns surrounding money laundering and terrorism financing. While the CBN is yet to comment publicly on the directive, efforts to reach the apex bank for clarification were unsuccessful.
The directive coincides with a court order obtained by the Economic and Financial Crimes Commission (EFCC) to freeze over 1,100 bank accounts allegedly involved in illegal foreign exchange transactions. The court order, obtained on Monday, empowers the EFCC to conclude its investigation within 90 days.
The President of the Bank Customers Association of Nigeria, Uju Ogubunka, voiced support for the CBN’s decision, stressing the importance of maintaining strict regulations across all financial institutions.
However, reactions on social media platforms such as X (formerly Twitter) have been mixed, with some customers expressing concerns about the safety of their funds.
In response to the directive, some customers have questioned the safety of their funds and contemplated transferring their money out of these platforms. Others have raised doubts about the security of their accounts and the rationale for keeping money on these platforms. Amidst these uncertainties, fintech companies are awaiting further instructions from the CBN, with no specified timeline for resolution.
