The Central Bank of Nigeria (CBN) says mobile money operators and fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint will be able to resume onboarding new customers “in another couple of months” after strengthening regulations to combat money laundering and illicit flows.
This was revealed by CBN Governor Olayemi Cardoso on Tuesday at the 295th Monetary Policy Committee meeting in Abuja, where the committee raised interest rates from 24.75% to 26.25%.
Addressing concerns over the CBN’s recent move to stop fintechs from onboarding new customers, seen as a crackdown on the sub-sector, Cardoso clarified that “the fintechs have not been singled out for any exceptional kind of treatment. The CBN remains proud of the exploits of fintech firms in the last number of years, and we would continue to support and strengthen them.”
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The Explainer had reported in April, how the apex bank halted fintech companies from enrolling new customers, sparking speculation of a clampdown on the financial technology sub-sector by the Cardoso-led CBN.
However, Cardoso said: “Reports that the CBN has decided to clamp down on fintech firms are furthest from the truth. However, regulation is very critical in a sector that seems to have grown so incredibly rapidly.'”
He cited concerns over illicit flows and money laundering within the “non-heavily regulated banking system,” prompting the CBN to “take a deep dive look at the whole issue of illicit flows and money laundering, particularly within the non-heavy regulated banking system.”
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Cardoso explained that the CBN has engaged with security agencies “to identify the places to tighten regulations and surveillance in the sub-sector.” This he said necessitates a temporary pause to “work with different players to strengthen regulations, not by any means to throw them out of business.”
The CBN helmsman added: “I am confident that as time goes on, and hopefully in another couple of months, all these will be something of the past, and then you will see that sector going back into what they’ve been known to do before, but certainly with a very stronger regulatory framework,” Cardoso stated.
Cardoso also clarified: “Let me re-emphasise that as at this point in time, we have not revoked the licenses of any of the fintech organisations.”
