Has CBN Shutdown OPay, Kuda, PalmPay, Other Digital Banks?

The rumour is being peddled by a Twitter account.

The rumour

Customers of the digital banks have gone into panic modes following the rumour that the Central Bank of Nigeria, CBN, has ordered the immediate shutdown of the Lagos offices of Opay, Kuda and other digital banks.

This is coming at a time when many Nigerians have moved to Opay, Kuda, PalmPay, CowryWise, Risevest and other digital banks for financial transactions.

The reason for the sudden migration is due to the transaction troubles customers are encountering with the apps and ATMs of traditional banks.

Naira scarcity and Cashless policy

With the recent redesign of the naira by the CBN and subsequent mandating of Nigerians to exchange their old naira for the new ones, the currency notes have become very scarce.

As a result, Nigerians have been in pain as both the new and old naira notes are not available.

Consequently, some Nigerian youths have taken to the streets to protest and vandalise banks and ATMs since the CBN insists that the old N500 and N1000 notes are no longer legal tender.

Also, President Buhari has, during a live nationwide broadcast, asked the CBN to return only the old N200 notes back into circulation to ease the people’s sufferings.

The policy to mop up the old notes, according to the CBN, is to fight corruption and inflation and grow the country’s economy.

Meanwhile, state governors have taken the Federal Government to the Supreme Court, asking the court to declare null and void, the CBN’s deadline for the old and new notes swap.

The Apex court had adjourned the matter to the 22nd of February while giving an order to the FG to mandate the CBN not to declare the old notes illegal tender.

Poor Services by traditional banks

Meanwhile, with the continued scarcity of the naira, one would have thought that the cashless policy would have a smooth sail, especially with bank apps and ATMs working optimally.

However, Nigerians have been suffering as bank apps keep malfunctioning.

From GT Bank, First Bank, Access Bank, to the other traditional banks, their transfer channels via apps are not working.

Transfers are hanging, bank apps are refusing access for logins, reversal of funds are not happening and recipients are not getting funds transferred to them.

This has made many Nigerians to look for alternative solutions since there is no cash too to transact.

Enters Opay, Kuda, Pampay, Other Digital banks:

With the troubles involving the traditional banks’ apps, Nigerians moved to digital banks like Opay, Kuda, PalmPay, CowryWise, etc. for succor.