Licence revocation:  Eyowo says customers will not be able to withdraw, send money

Article summary

• Eyowo said its customers will not be able to send or receive money until the issue of its licence revocation by the CBN is resolved.
• The digital bank, however, assured its customers that their money remains intact.
• The bank said it is working with the CBN and its other partner banks to resolve the matter.

Digital bank, Eyowo, has said its customers will not be able to send or receive money from their accounts for some time as a result of the revocations of its Microfinance operating licence by the Central Bank of Nigeria.

While noting that it is actively working with the apex bank to resolve the issue, the bank said the halt of transactions may last 24 to 72 hours. It, however, assured its customers that their money remains intact.

With the revocation of its licence, the bank has obviously been disconnected from other banks in the country. Hence, Eyowo said it is also working with its partner banks to fix the problem.

Customers’ money is safe

The company in a statement shared on its Twitter handle on Wednesday after the report of its licence revocation alongside over 100 other microfinance banks, said:”

• “Regarding the CBN directive, we are actively working with the Central Bank of Nigeria to resolve all pending issues and put our users at ease. To our users, rest assured that the CBN directive has no immediate impact on the safety of your money, nor is it connected in any way to the planned service improvements and ongoing onboarding freeze we announced. We remain committed to ensuring the security of your money and apologize for any inconveniences that you will experience in this period.”

Transactions suspended

• “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 recognize 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,” the digital bank stated.

In case you missed it

The CBN in the first batch of its licence revocation announced on Tuesday withdrew the microfinance licence of Eyowo, and 46 other companies. The apex bank followed with a list of another 132 Microfinance Banks, Finance Companies, and Mortgage Banks, whose licences have been revoked

According to the apex bank, the licences of the banks were revoked because they had either remained inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six (6) months. The bank said this is in contravention of the Banks and other Financial Institutions Act (BOFIA), 2020, and the Revised Regulatory and Supervisory Guidelines for Microfinance Banks in Nigeria.

The CBN said the various actions taken by the Regulatory Authority to halt their persistent failure to carry on business had failed, hence the decision to revoke their licence.