The Central Bank of Nigeria (CBN) has taken a drastic measure to curb the alleged use of microfinance banks to manipulate the naira’s value and funnel cryptocurrency. The CBN has barred some microfinance banks, including Moniepoint, Opay, and Kuda, from opening new accounts and accepting new customers. This move is part of the CBN’s efforts to prevent money laundering activities that have contributed to the naira’s recent depreciation against the dollar.
The naira, which traded at N1350 against the dollar on Monday, has seen a significant decline in value over the past few weeks, with the currency previously trading at N950 in early April. The CBN’s actions are aimed at addressing the persistent issue of naira manipulation, which has been a major concern for the government.
In February, the CBN, in collaboration with the Economic and Financial Crimes Commission (EFCC), cracked down on Binance, detaining its executives Tigran Gambaryan, a U.S. citizen, and British-Kenyan Nadeem Anjarwalla over allegations of naira manipulation. The Nigerian government demanded that Binance release the names of its top 100 users and their transactions to negotiate the release of the detained executives.
The CBN’s actions are part of a broader effort to regulate the financial sector and prevent the misuse of financial institutions for illegal activities. The CBN has revoked the licenses of 179 microfinance banks, four primary mortgage banks, and three finance companies, citing failure to comply with regulatory conditions and obligations.
The revocation of licenses is a significant step towards ensuring that financial institutions operate by the law and do not engage in activities that undermine the stability of the financial system.
The CBN’s actions are aimed at protecting the integrity of the financial system and preventing the misuse of financial institutions for illegal activities. The CBN’s efforts to regulate the financial sector are crucial in maintaining the stability of the economy and preventing the misuse of financial institutions for illegal activities.
