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The Central Bank of Nigeria (CBN) has announced that mobile money operators, including fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint, will resume onboarding new customers in a few months. This announcement was made by the CBN Governor, Olayemi Cardoso, during the 295th Monetary Policy Committee (MPC) meeting in Abuja, where the interest rate was increased from 24.75% to 26.25%.
Governor Cardoso explained that the CBN has been working closely with these companies to enhance their operations. This pause in onboarding new customers was implemented to prevent money laundering and illicit financial flows. The CBN introduced measures to improve the regulatory framework for onboarding new and existing customers.
Cardoso expressed confidence that within a couple of months, the sector would overcome these challenges and resume normal operations with a stronger regulatory environment. "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,” he said.
The CBN had halted the onboarding of new customers by fintech companies in April, a move perceived by some as a crackdown on the financial sub-sector. However, Governor Cardoso clarified that this decision was not a clampdown but a necessary step to ensure tighter regulations and surveillance against illicit financial activities.
Cardoso dismissed claims that fintech firms were being unfairly targeted, emphasizing the importance of regulation in a rapidly growing sector. He acknowledged the significant contributions of fintech firms over the years and assured continued support from the CBN. "The fintechs have not been singled out for any exceptional kind of treatment," he said, adding that the CBN remains proud of their achievements and is committed to supporting them.
The governor highlighted recent concerns about money laundering and illicit flows within the non-heavily regulated banking system, including issues related to cryptocurrencies. This prompted the CBN to collaborate with security agencies to identify areas needing stricter regulation and surveillance.
“For that reason, we were concerned with respect to how we saw the issue of anti-money laundering and illicit flows as they made their way within the various sub-sectors of the financial industry and we felt there was a need for us to take a breather and work with different players to strengthen regulations, not by any means to throw them out of business,” Cardoso explained.
He reassured that no fintech licenses had been revoked and reiterated the CBN's intention to reinforce regulations without hindering business operations. The CBN's goal is to ensure a robust and secure financial environment while supporting the growth and development of fintech companies in Nigeria.
