Stop Onboarding New Customers, CBN Orders Fintech Firms

The Central Bank of Nigeria (CBN) has directed fintech companies to stop onboarding new customers until further notice.

This directive came a few months ago, when the CBN mandated all financial institutions to collect ID cards before creating financial accounts, which contradicts a 2013 central bank rule designed to support financial inclusion that allowed Nigerians to open accounts without identity cards.

In addition, the Nigeria Inter-Bank Settlement System (NIBSS) asked banks and mobile money operators to delist unlicensed fintechs from directly accepting consumer deposits.

One of the affected fintech companies who sent a notice on its website confirmed this directive from CBN.

The notice reads, “We’ve temporarily paused new signups on our platform. This means that you’ll be unable to open a new account at the moment. We apologise for any inconvenience this may cause.”

While reports indicate that the directive by CBN was in relation to accounts allegedly being used for illegal forex dealings, a source who spoke to LEADERSHIP anonymously, urged Fintech companies to straighten their relationship with the regulators.

“Most of the fraud cases are carried out in the traditional banks. Why is CBN always after a Fintech company? I think Fintech companies would need to sit down to educate the regulators on how they operate,” the source averred.