…as MPC raised the interest rate from 24.75% to 26.25%.
The Central Bank of Nigeria (CBN) has announced that mobile money operators, including popular fintech firms like OPay, Palmpay, Kuda Bank, and Moniepoint, will be able to start enrolling new customers again in a few months.
This announcement came from CBN Governor Olayemi Cardoso during the 295th Monetary Policy Committee (MPC) meeting in Abuja today. At the same meeting, the MPC raised the interest rate from 24.75% to 26.25%.
Governor Cardoso explained that the CBN has been working with these fintech companies to improve their operations and strengthen the sector. To combat money laundering and illegal financial activities, the CBN introduced new measures to tighten the onboarding process for new and existing customers.
According to him, “I am confident that in a couple of months, these issues will be resolved, and the sector will return to normal operations with a stronger regulatory framework,”
In April, the CBN had stopped fintech companies from signing up new customers, which many saw as a clampdown on the financial sub-sector. However, Governor Cardoso clarified that this was not the case.
He emphasized that the CBN is proud of the achievements of fintech firms over the years and aims to continue supporting and strengthening them.
Cardoso said, “the fintechs have not been singled out for any exceptional kind of treatment,” he explained that the rapid growth of the sector required strict regulation to prevent illegal financial activities.
“More recently, we took a close look at illicit flows and money laundering within the non-heavily regulated banking system, especially with the rise of cryptocurrencies, which showed us the need for increased surveillance.”
To address these concerns, the CBN has partnered with security agencies to identify areas where regulations need to be tightened.
Governor Cardoso stressed that the intention was not to shut down fintech companies but to ensure a safer financial environment.
“We were concerned about anti-money laundering and illicit flows within various sub-sectors of the financial industry. We felt it was necessary to pause and collaborate with different players to strengthen regulations. We have not revoked the licenses of any fintech organizations,” he reiterated.
Earlier, some bank customers panicked when the CBN banned mobile money operators from enrolling new customers. However, with this recent announcement, it is clear that the CBN is focused on improving the sector’s security and reliability, ensuring that fintech firms can soon resume their operations and continue serving their customers.
