Money

Bank Begs Customers as Withdrawal and Transfer Stop Working as CBN Revokes Its License

Thursday, May 25, 2023 at 9:50 AM by Dave Ibemere

Eyowo, a popular digital bank, has said its customers cannot withdrawals and money transfers
The Central Bank of Nigeria (CBN) recently revoked the licenses of Eyowo and over 170 other microfinance banks and finance companies
Eyowo reassures its customers that their funds are secure and expresses its commitment to resolving the issues promptly

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The Central Bank of Nigeria has revoked the operating licenses of more than 170 mortgage banks and finance companies, as stated in a circular published on its website.

Following this development, Eyowo, one of the affected microfinance banks, has contacted its customers, notifying them of a temporary suspension on fund withdrawals.

CBN microfinance bank — Eyowo tells customers the transaction challenges could last for days. Photo credit: Bloomberg/Getty Images
Source: Getty Images

In a statement released via its official Twitter account, Eyowo reassured its customers that it is collaborating with its partner banks to address the issue.

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The company also stated that the transaction challenges may endure for 24 to 72 hours.

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Additionally, Eyowo disclosed that it is actively engaging with the apex bank to resolve the matter.

Part of the statement reads:

“Over the next few hours, you will experience challenges sending and receiving money with Eyowo. This may take up to 24-72 hours to completely resolve, we will keep you abreast of the progress made and the next steps.

“We recognise the significance of open communication during this period and will keep you informed of any developments and progress made towards resolving the situation.

"We deeply appreciate your trust and support as valued customers and stakeholders. We are also actively working with our partner banks on a quick fix to the transaction challenge."

Why did CBN revoke license of Eyowo and over 100 microfinance banks

Legit.ng had earlier reported the decision to revoke the licenses was made by the CBN governor, Godwin Emefiele.

The revocation was based on three primary reasons. Firstly, the banks were found to have not conducted business in Nigeria for six months, which violated the purpose for which their licenses were granted.

Secondly, they failed to meet the conditions specified during the issuance of their licenses.

Lastly, the banks did not fulfil their obligations per the regulations outlined in the Banks and Other Financial Institutions Act (BOFIA) 2020, Act No. 5, as mandated by the CBN.

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