SAT 21 AUG, 2021-theGBJournal- In what can be regarded as a desperate move to preserve the value of the naira, the Central Bank of Nigeria (CBN) obtained a court order to freeze the account of some Fintech companies in the country.
The order was on the back of allegations that the Fintech companies are operating without asset management licenses and utilizing FX sourced from the Nigerian FX market for purchasing foreign bonds/shares in contravention of the CBN circular referenced TED/FEM/FPC/GEN/01/012, dated 1st July 2015.
Consequently, we note that the CBN has implemented freezing of the bank accounts of the affected companies – Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, CTL/Business Expenses and Trove Technologies Limited – for 180 days pending the outcome of its investigation.
For us, this development could further worsen foreign investors’ perception of the country’s investment climate and may constrain private investment in the Fintech space.
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