Bank customers in Nigeria are expressing panic following the Central Bank of Nigeria’s (CBN) directive banning mobile money operators and fintech firms from onboarding new customers. While the Bank Customers Association of Nigeria has backed the CBN’s move, concerns linger among customers about the safety of their funds.
The directive, which affects fintech companies such as OPay, Palmpay, Kuda Bank, and Moniepoint, prohibits them from opening new accounts until further notice. Reliable sources from three major fintechs, speaking anonymously, confirmed the development to The PUNCH on Monday.
The CBN’s decision is reportedly linked to an ongoing audit of the Know-Your-Customer (KYC) process of fintechs, which have faced scrutiny over concerns regarding money laundering and terrorism financing. Although the CBN has not publicly commented on the directive, attempts to reach the apex bank for clarification were unsuccessful.
Coinciding with the CBN’s directive is a court order obtained by the Economic and Financial Crimes Commission (EFCC) to freeze at least 1,146 bank accounts allegedly involved in illegal foreign exchange transactions. The court order grants the commission 90 days to conclude its investigation into the matter.
President of the Bank Customers Association of Nigeria, Uju Ogubunka, supports the CBN’s move, emphasizing the need for strict regulations to ensure the integrity of financial institutions. He stressed the importance of KYC compliance for fintechs, aligning them with the standards applicable to deposit money banks.
On social media platforms, customers have expressed worries about the safety of their funds, with some suggesting transferring their money out of affected platforms. Others questioned the rationale for keeping money in accounts linked to fintechs under regulatory scrutiny.
Fintech companies, including Moniepoint and PalmPay, have confirmed compliance with the CBN’s directive, stating that they await further instructions. However, customers remain anxious about the implications of the regulatory action on their financial transactions and account safety.
