Abuja, June 5, 2024 – The Central Bank of Nigeria (CBN) has officially lifted its ban on onboarding new customers for five major fintech startups: Paga, OPay, Kuda, Palmpay, and Moniepoint. This decision comes into immediate effect, following the expiration of a compliance deadline.
In an announcement made on Monday via its official X handle, OPay confirmed the news, stating, “We are thrilled to announce that the Central Bank of Nigeria has given OPay the thumbs up to resume onboarding new users.”
The ban was originally imposed on April 30, restricting the five fintech companies from adding new customers due to concerns over their involvement in illicit foreign exchange transactions. The CBN had given these companies until May 31 to meet stringent Know Your Customer (KYC) and other regulatory requirements.
CBN Governor Olayemi Cardoso, at the conclusion of the 295th Monetary Policy Committee (MPC) meeting, had hinted at the impending lift of the ban. He clarified that while the CBN had imposed restrictions, it had not revoked any licenses from the fintech banks involved.
The lifting of the ban marks a significant development for the affected fintech companies. OPay expressed its excitement in a public statement, highlighting the resumption of their services for new users as a positive step forward.
The fintech companies were required to adhere strictly to KYC norms and other regulatory guidelines to ensure transparency and prevent illicit activities. The deadline for compliance was set for May 31, and with the companies meeting these requirements, the CBN decided to lift the restrictions.
The lifting of the ban is expected to have positive implications for Nigeria’s digital financial services sector, allowing the fintech companies to expand their customer base and enhance financial inclusion. The decision is seen as a reaffirmation of the CBN’s commitment to fostering innovation in the financial technology space while ensuring regulatory compliance and market integrity.
With the ban lifted, Paga, OPay, Kuda, Palmpay, and Moniepoint can now resume onboarding new customers, contributing to the growth and dynamism of Nigeria’s fintech landscape. This development underscores the importance of regulatory compliance and the proactive measures taken by the CBN to ensure the stability and integrity of the financial system.
