Juliet Jacob/Ogbodo Ozioma Favour
Reactions have trailed ban on digital banking by the Central Bank of Nigeria (CBN).
The apex bank on Monday announced the ban on several microfinance banks, including Moniepoint, Opay, and Kuda, from opening new accounts and accepting new customers.
The CBN said the institutions were involved in facilitating cryptocurrency transactions and manipulating the value of the naira.
The CBN’s decision to halt new account openings is aimed at combating money laundering activities, which have contributed to the recent depreciation of the naira against the dollar.
As of Monday evening, the naira was trading at N1350 against the dollar, marking a decline from its previous strength where it reached N950 in early April.
The CBN clamped down on Moniepoint and others has triggered anger by their customers and potential customers.
In an interview with the African Health Report, Mrs. Adaze Ugo highlighted the convenience of services provided by microfinance banks compared to traditional banks, expressing concern over the future of Nigeria’s banking sector.
Meanwhile, opinions on the CBN’s move are divided among Nigerians. While some, like Okechukwu Samuel, appreciate the assistance provided by microfinance banks, others, like Mr. Jeff, criticize the government’s priorities, urging them to focus on more pressing issues like terrorism financing.
Miss Ajibola, a teacher in Abuja, deems the banning of mobile banking as inhumane, emphasizing its importance, especially for the elderly. On the contrary, Mr. Samblaze, a content creator, finds the ban unhelpful, arguing that microfinance banks have been instrumental and convenient for individuals.
Miss Onyema, a Point of Sale Vendor in Pigbaksa Abuja, expressed her immediate reaction to the news, indicating her need to withdraw funds from her Opay account upon learning of the ban.
The CBN’s actions signal a significant shift in Nigeria’s financial landscape, sparking debates and concerns among citizens about the future of banking and financial services in the country.
The CBN’s actions follow a period of significant naira depreciation in February, where it nearly reached N2000 to a dollar.
During this time, in a bold move the CBN, in collaboration with the Economic and Financial Crimes Commission (EFCC), conducted a crackdown on Binance, detaining its executives Tigran Gambaryan and Nadeem Anjarwalla. The detained executives were accused of involvement in naira manipulation.
The Nigerian government has demanded that Binance disclose the names of its top 100 users and their transaction details as part of negotiations for the release of the detained executives.
