The Central Bank of Nigeria (CBN) has lifted its restriction on onboarding new customers, imposed on five leading fintech startups: Paga, OPay, Kuda, Palmpay, and Moniepoint. This decision follows the expiration of a May 31 deadline for the fintech companies to meet specific compliance requirements.
“All hands were on deck to fix this issue. Teams were working round the clock,” said a source close to the matter, highlighting the intense efforts made by the fintechs to comply with the CBN’s directives.
In April, the CBN had instructed these fintechs to halt new account openings due to issues related to Know Your Customer (KYC) protocols. This directive was also linked to a broader clampdown on Peer-to-Peer cryptocurrency transactions within Nigeria. At the time, the affected fintechs cautioned their customers against using their platforms for crypto transactions, as they were required to report such activities.
The suspension had significant operational impacts.
“The restriction affected fintechs’ ability to onboard new customers. We are thrilled to announce that the Central Bank of Nigeria has given OPay the thumbs up to resume onboarding new users.” explained a source.
Confirming the lift of the ban, OPay announced via its X (formerly Twitter) handle. OPay reiterated its commitment to the approved KYC verification process, urging customers to follow the due verification steps for their accounts.
The removal of the restriction comes as a surprise, as the CBN had previously indicated that the ban might last for several months. Olayemi Cardoso, the CBN governor, had suggested during the 295th Monetary Policy Committee meeting that the affected fintech firms would likely resume enrolling new customers in a few months.
“I am confident that as time goes on, and hopefully in another couple of months, all these will be something of the past,” Cardoso said, emphasizing a return to normalcy with a stronger regulatory framework.
Cardoso also mentioned that the CBN’s directive was part of broader efforts to curb money laundering and illicit financial flows.
“Regulation is very critical in a sector that seems to have grown so incredibly rapidly,” he stated during the MPC meeting, underlining the need for robust regulatory oversight in the rapidly expanding fintech sector.