Nigerian financial services companies are under scrutiny following a directive from the Nigeria Inter-Bank Settlement System (NIBSS), instructing banks and mobile money operators to remove unlicensed fintechs from their lists for directly accepting consumer deposits.
The circular, issued by NIBSS, directs Deposit Money Banks, Merchant Banks, Switches, Mobile money operators, and others to delist non-deposit taking financial institutions, such as Switching Companies, Payment Solution Service Providers (PSSPs), and Super Agents (SAs), from outward transfer channels.
This move aims to ensure compliance with the Central Bank of Nigeria’s guidelines on electronic payment activities. While some industry players, including Flutterwave and Paystack, have clarified that the directive is not targeted at licensed fintechs, others with unapproved deposit-taking activities may face removal from the list of approved institutions for consumer fund transfers.
This regulatory measure aligns with recent concerns raised by the CBN governor regarding technology-driven payment services operating beyond approved activities.