In a move that has left many bank customers concerned, the Central Bank of Nigeria (CBN) has issued a directive preventing mobile money operators, including fintech firms, from onboarding new customers.
The CBN's decision is reportedly linked to an ongoing audit of the Know-Your-Customer (KYC) process of these fintechs, which have come under increasing scrutiny in recent months over concerns about money laundering and terrorism financing.
According to sources, the CBN had summoned the heads of these fintech companies to Abuja last week to discuss the issues surrounding the KYC process. However, the central bank has not yet made a public statement on the directive to the fintech firms.
The new directive coincides with a court order obtained by the Economic and Financial Crimes Commission (EFCC), which has led to the freezing of 1,146 bank accounts owned by various individuals and companies allegedly involved in illegal foreign exchange transactions.
The CBN's move will directly impact the operations of popular fintech companies such as OPay, PalmPay, Kuda Bank, and Moniepoint, as they will be temporarily prevented from opening new accounts until further notice.
The news has sparked concerns among bank customers, who are worried about the potential impact on their access to financial services and the overall stability of the fintech ecosystem in Nigeria.
Industry experts are closely monitoring the situation and await further clarification from the CBN on the rationale behind the directive and its potential long-term implications for the country's financial landscape.