The Central Bank of Nigeria (CBN) has announced that mobile money operators, including prominent fintech firms such as OPay, Palmpay, Kuda Bank, and Moniepoint, will resume the enrolment of new customers in the coming months. This was disclosed by the CBN Governor, Olayemi Cardoso, during the 295th Monetary Policy Committee (MPC) meeting held in Abuja. At this meeting, the MPC also decided to increase the interest rate from 24.75 percent to 26.25 percent.
Governor Cardoso elaborated that the CBN has been in discussions with various industry players to emphasize the importance of strengthening their operations. This move is part of broader efforts to curb money laundering and other illicit financial activities. The CBN has introduced several remedial measures aimed at tightening the onboarding process for new customers and enhancing scrutiny of the existing clientele.
“I am confident that as time goes on, and hopefully in another couple of months, all these issues will be resolved. You will see this sector returning to its previous level of activity, but with a much stronger regulatory framework,” Cardoso stated.
In April, the CBN had halted the ability of fintech companies to onboard new customers, a decision that many perceived as a clampdown on the rapidly growing financial sub-sector. Addressing these concerns, Cardoso clarified that the move was not intended to single out fintech firms for exceptional treatment. He emphasized that the CBN continues to be proud of the achievements of fintech companies over the years and remains committed to supporting and strengthening the sector.
“The notion that the CBN is clamping down on fintech firms is far from the truth,” Governor Cardoso added that, “Regulation is critical in a sector that has experienced such rapid growth. Our recent focus has been on illicit financial flows and money laundering, especially within the less regulated parts of the banking system. Incidents related to cryptocurrencies have highlighted the need for heightened surveillance.”
Cardoso noted that the CBN has collaborated with security agencies to pinpoint areas where regulatory and surveillance measures need to be tightened. He explained that the decision to temporarily pause new customer enrolments was driven by concerns over anti-money laundering and illicit financial flows within various sub-sectors of the financial industry. This pause was seen as necessary to work collaboratively with industry players to strengthen the regulatory framework, rather than an attempt to stifle the sector’s growth.
“To reiterate, we have not revoked the licenses of any fintech organizations,” Cardoso assured. This statement aims to dispel any fears about the CBN’s intentions and reaffirm the bank’s commitment to fostering a robust and secure financial ecosystem in Nigeria.
The steps taken by the CBN underscore the delicate balance between fostering innovation in the financial sector and ensuring that regulatory frameworks keep pace with rapid advancements. As fintech firms prepare to resume customer enrolments, they do so under a more stringent and vigilant regulatory environment, which aims to protect the integrity of Nigeria’s financial system while allowing for continued growth and innovation in the sector.
