The Central Bank of Nigeria (CBN) has announced that mobile money operators, including fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint, will resume enrolling new customers in a few months.
CBN Governor Olayemi Cardoso made this announcement on Tuesday at the 295th Monetary Policy Committee (MPC) meeting in Abuja, where the MPC raised the interest rate from 24.75% to 26.25%.
Cardoso explained that the CBN has been working with many of these operators to strengthen their operations. To combat money laundering and illicit financial flows, the CBN has introduced measures to improve the onboarding process and manage the existing customer base more effectively.
“I am confident that in a few months, these issues will be resolved, and the sector will return to its previous state, but with a much stronger regulatory framework,” Cardoso stated.
In April, the CBN halted the onboarding of new customers by fintech companies, a move perceived by some as a crackdown on the financial sub-sector under Cardoso’s leadership.
When questioned about this decision, Cardoso refuted claims of a crackdown, stating, “The reports that the CBN has decided to clamp down on fintech firms are far from the truth.” He emphasized that fintechs have not been singled out for exceptional treatment and that the CBN is proud of their achievements over the years, continuing to support and strengthen them.
“However, regulation is critical in a rapidly growing sector,” Cardoso added, pointing to concerns about illicit financial flows within the non-heavily regulated banking system.
He highlighted that recent scrutiny of illicit flows and money laundering, particularly in areas less regulated by traditional banking, had revealed the need for increased surveillance. This includes issues related to cryptocurrencies.
The CBN has been collaborating with security agencies to identify areas needing tighter regulation and surveillance within the sub-sector.
Cardoso reiterated, “We were concerned about anti-money laundering and illicit flows within various financial sub-sectors, prompting us to pause and work with different players to strengthen regulations, not to drive them out of business. As of now, we have not revoked the licenses of any fintech organizations.”