The Central Bank of Nigeria (CBN) has banned mobile money operators, including fintech firms, from onboarding new customers, causing panic among some bank customers. The move is linked to an ongoing audit of the Know-Your-Customer process of fintechs, which have faced scrutiny over concerns around money laundering and terrorism financing. The ban affects companies such as OPay, Palmpay, Kuda Bank, and Moniepoint.
The Bank Customers Association of Nigeria supported the CBN's directive, emphasizing the need for strict regulations to ensure the integrity of financial institutions. The CBN has not publicly commented on the directive, but the Economic and Financial Crimes Commission (EFCC) obtained a court order to freeze at least 1,146 bank accounts allegedly involved in illegal foreign exchange transactions.
Some bank customers expressed concern over the safety of their funds, with some suggesting transferring money out of affected platforms. Fintech companies have complied with the directive, halting new account creation until further notice. The CBN aims to increase overall financial inclusion to 95 per cent of the adult population by 2024, but the ban may affect this target. Customers are advised to monitor developments and follow regulatory guidelines regarding their accounts.
