The Central Bank of Nigeria (CBN) has instructed four fintech companies to cease the onboarding of new customers until further notice.
The affected fintech firms—OPay, Palmpay, Kuda Bank, and Moniepoint—have been allegedly linked to accounts involved in illicit foreign exchange transactions.
Representatives from two of the affected firms confirmed the directive on Monday.
“I can confirm that 90 per cent of the accounts implicated in the illicit forex transactions are with commercial banks, and only 10 per cent are with fintechs.
“Why then has the CBN not extended this directive to the commercial banks? We face a widespread issue here, and targeting fintechs seems like an unfair focus on the more vulnerable targets,” explained one source who preferred anonymity.
As of the time of reporting, none of the four firms have responded to the development.
This development occurs amid a crackdown on currency speculators in the foreign exchange market.
Recently, the Court granted the Economic and Financial Crimes Commission’s request to freeze 1,146 bank accounts.
