CITIZENS COMPASS –The Central Bank of Nigeria (CBN) has ordered four fintech companies to suspend the onboarding of new customers until further notice.

The affected fintech firms, namely OPay, Palmpay, Kuda Bank, and Moniepoint, have come under scrutiny due to allegations of their accounts being utilised for illicit foreign exchange transactions.

This could be the outcome of the recent freezing of 1,146 bank accounts linked to unauthorised forex transactions to prevent further illegal activity.

According to reports, representatives from two of the companies acknowledged that the CBN’s directive is connected to these allegations.

However, they expressed concerns that the directive might be misdirected, highlighting that the majority of the implicated accounts are held by commercial banks rather than fintech platforms.

Meanwhile, the Bank Customers Association of Nigeria backed the CBN directive.

Some customers of the affected banks have entertained fear following the ban.