By: Amadi Vincent Uzoma
The Central Bank of Nigeria (CBN) has announced that mobile money operators, including fintech companies such as OPay, Palmpay, Kuda Bank, and Moniepoint, will start enrolling new customers again “in the next couple of months”.
CBN Governor, Olayemi Cardoso, made the statement during the 295th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, where the MPC raised the interest rate from 24.75 percent to 26.25 percent.
Cardoso mentioned that the central bank has been in discussions with many players in the industry about the importance of enhancing their operations.
To combat money laundering and illicit financial flows, the CBN has proposed “remedial measures to assist the sector in improving the onboarding process for new customers and existing clientele”.
Cardoso expressed confidence that with time, hopefully in the next couple of months, the issues will be resolved, and the sector will return to its previous state, but under a more stringent regulatory framework.
In April, the CBN had halted fintech firms from onboarding new customers, a decision perceived as a crackdown on the sector by the CBN under Cardoso’s leadership.
When questioned about the rationale behind the decision, Cardoso clarified that reports of the CBN targeting fintech firms were untrue. He emphasized that “the fintechs have not been singled out for any special treatment” and acknowledged the achievements of fintech companies over the years, stating that the CBN will continue to provide support and strengthen them.
Cardoso highlighted the importance of regulation in a rapidly growing sector, pointing to the need to address illicit financial activities within the sector.
The CBN has collaborated with security agencies to identify areas where regulations and surveillance need to be enhanced.
He also underlined that the decision to pause onboarding was taken to work with industry players to improve regulations, not to push them out of business.
Cardoso clarified that no fintech organization’s license has been revoked at the current time.
