The Central Bank of Nigeria (CBN) has lifted its ban on several prominent fintech companies, including OPay, Moniepoint, Kuda and Palmpay, , allowing them to resume onboarding new customers. This decision comes five weeks after the apex bank halted the fintechs’ onboarding activities due to concerns over illicit foreign exchange transactions.
Although the CBN has not yet issued an official statement, both OPay and Kuda confirmed the news in separate communications to their customers on Monday.
Background
The CBN had previously imposed restrictions on certain fintech companies due to concerns over compliance with regulatory standards, risk management practices, and financial stability. These measures included freezing accounts and halting specific operations, causing substantial disruptions for both the fintech companies and their customers.
The lifting of the restrictions followed a series of engagements between the CBN and the fintech firms. These discussions focused on enhancing compliance with existing regulations, improving transparency, and implementing more robust risk management frameworks.
Stakeholders in the fintech sector have welcomed the CBN’s decision. “This is a significant step forward for the fintech industry in Nigeria. It demonstrates a balanced approach to regulation and innovation,” said Olugbenga Agboola, CEO of Flutterwave. “We remain committed to upholding the highest standards of compliance and customer service.”
Shola Akinlade, co-founder of Paystack, echoed this sentiment, stating, “The lifting of these restrictions allows us to continue our mission of simplifying payments and driving financial inclusion. We appreciate the CBN’s willingness to engage and find common ground.”
The CBN’s decision to lift the ban on leading Nigerian fintech companies marks a pivotal moment for the country’s financial technology sector. It highlights the importance of regulatory compliance while fostering an environment where innovation can thrive.
As these fintech companies resume full operations, they are expected to drive further advancements in digital payments and financial services, contributing significantly to Nigeria’s economic growth.
