Key Takeaways
- Nigerian court grants requests from two fintech firms to temporarily unfreeze their accounts
- The temporary court order will enable the firms to settle rent and salary costs
- Nigerian Central Bank has been prosecuting financial firms suspected of dealing in unsolicited forex transactions
The News Agency of Nigeria revealed this development on Tuesday, September 7, 2021.
According to the report, the counsel representing the fintech companies, Chiezohu Okpoko, stated that an order from the court had been granted.
The firms will be able to access their bank accounts and offset their rents and salary costs.
Okpoko also added that his clients were also seeking an amicable settlement with the Central Bank of Nigeria (CBN) regarding the current legal situation.
The CBN counsel Michael Aondoakaa also stated that he was not opposed to the order issued by the court.
Aondoakaa added that what was essential to the CBN was for the companies to operate within the guidelines of existing financial regulations.
He also hinted that the apex bank was also opened to resolving the case amicably.
The CBN had gotten an order on August 17, 2021, from a high court to freeze the account of 6 fintech companies for 180 days, pending the investigation into their financial activities.
The financial regulator accuses the fintech firms of illegally soliciting forex to purchase foreign stocks.
According to the suit, the companies' activities were making the naira weaker since most of the transactions were carried out in US dollars.
The naira has struggled to maintain value to the US dollars.
In addition, the country is mainly dependent on foreign goods, which has caused a strain on the forex reserves.
As a result, the CBN has taken the approach of prosecuting companies that deal in forex to arrest the slide of the naira.
What are your thoughts on the CBN style of prosecuting fintech firms that deal in foreign currencies?
