The Central Bank of Nigeria (CBN) has issued a directive to four fintech companies—OPay, Palmpay, Kuda Bank, and Moniepoint—ordering them to halt the onboarding of new customers until further notice. This decision follows allegations linking these fintech firms to illicit foreign exchange transactions.
Representatives from two of the affected companies confirmed the directive, expressing concerns over the perceived unfair targeting of fintechs when the majority of accounts involved in the illicit transactions are linked to commercial banks.
“While 90% of the accounts implicated in illicit forex transactions are held with commercial banks, only 10% are associated with fintechs,” one source explained, highlighting the broader nature of the issue.
As of the time of reporting, none of the four companies have officially responded to the CBN’s directive. This development coincides with intensified efforts by regulatory bodies to crack down on currency speculators in the foreign exchange market.
Recently, the Economic and Financial Crimes Commission (EFCC) obtained a court order to freeze 1,146 bank accounts as part of ongoing efforts to curb illicit financial activities.
