Several local sources state that the Central Bank of Nigeria has withdrawn sanctions against a number of fintech and FX players that were imposed in 2021 during the crypto ban period.

The 440 individuals and businesses’ bank accounts were subject to a post-no-debit restriction, which the Central Bank of Nigeria (CBN) has ordered banks to remove. Post-no-debt restrictions prevent all debit transactions from being made on the accounts, including those made by ATMs and checks, but they do not prevent inflows.

A.M. Barau issued the directive ordering banks to notify the appropriate consumers of a specific development on behalf of the CBN Director of Banking Supervision. The circular did not, however, give any precise justifications for the central bank’s move.

The list of affected entities comprises of:

Bamboo Systems Technology Limited
Escale Oil & Gas Limited
Rise Vest Technologies Limited
Chaka Technologies Limited
AbokiFX Limited
Nairabet International
Northwood Energy Services
Proport Marine Limited

You are hereby instructed to remove the Post-No-Debit restriction that was imposed at our request on the accounts of the under-listed bank customers.

Banks were given orders by the Central Bank of Nigeria (CBN) in 2021 to freeze the accounts of 18 firms. These businesses operated in a variety of sectors, such as money exchange offices, construction enterprises, investment firms, money laundering services, and real estate corporations.

The apex bank has unfrozen the bank accounts of all 18 businesses.

When the CBN first felt the heat of a depreciating local currency in September 2021, we reported on the freezing of bank accounts belonging to 4 investment businesses, specifically:

Risevest
Bamboo
Trove
Chaka

The CBN charged the companies in 2021 with violating a 2015 CBN rule by using foreign currency obtained from the Nigerian forex market to buy foreign bonds and shares.

The bank claimed that the companies’ foreign exchange transactions caused the Naira to weaken against the US dollar, necessitating the need to block 15 of their accounts for 180 days. They were charged with dealing in cryptocurrencies as well.

Additionally, the bank asserted in an affidavit that the platforms were breaking Nigerian trading rules, including engaging in cryptocurrency trading in violation of CBN policy.

The FX rates aggregator AbokiFX was also required to halt operations in September 2021 after being charged with rate manipulation by the governor in office at the time, Godwin EMefiele. The platform claimed that because it neither trades foreign exchange nor establishes rates, it lacks the authority to manipulate rates. It claimed that it exclusively publishes the data that it receives from parallel rate dealers and BDCs (Bureau de Change).

In June 2023, Emefiele’s term as CBN Governor was terminated by Bola Tinubu, the next President.