Nigerian fintechs urge customers not to panic after CBN freezes accounts

The Central Bank of Nigeria (CBN) after securing an injunction at Federal High Court in Abuja, freezes the accounts of four Nigerian fintech companies: Chaka; Risevest; Trove; and Bamboo; for operating as asset management companies without a licence.

However, the companies urge their customers not to panic, assuring them safety of their funds as they commence negotiations with the federal government.

According to Michael Aondoakaa, CBN’s lawyer and a Senior Advocate of Nigeria, the companies were “utilising foreign exchange 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 July 1, 2015.”

Chaka, among others, argued that it “is duly licensed by the Security Exchange Commission (SEC), which means that all of our operations are within the purview of Nigerian regulators.”

In an email to its customers, the company wrote: 

“Funds on Chaka are insured by the SIPC and all investments are registered and regulated by the Security Exchange Commission (SEC) and Nigerian Exchange Group (NGX).”

By Elijah Christopher

Elijah Christopher
Elijah Christopher is a journalist at A New Touch Of Africa, is also a creative writer, a poet, and an IT enthusiast. He contributed to the collaborative poem written in celebration of Edwin Morgan Centenary, the first Glasgow poet laureate and Scottish national poet from the University of Glasgow. He loves meeting people and learning about new places, cultures, events, and lifestyles.

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