E-Financial
CBN under Fire for Freezing Thousands of Banks’ Accounts
House of Representatives on Tuesday, urged Mr Godwin Emefiele, governor of Central Bank (CBN), to unfreeze five thousand accounts, allegedly frozen by the apex monetary institution.
Mr. Godwin Emefiele, CBN governor
The lawmakers issued the directive, after adopting a “Motion of Urgent National Importance”, sponsored by Rep. Mark Gbillah (Benue-PDP).
In raising “Concerned about the plethora of petitions and “save our soul” (SOS) appeals from Nigerian Citizens across the country In recent times about the untold hardship and poverty they are experiencing from extended freezing of their personal, corporate and other accounts by the Central Bank of Nigeria (CBN), reports of the current unprecedented freezing of over 5000 bank accounts in Nigeria by the CBN and allegations of injustice, illegality, victimisation and prejudice by the CBN against innocent Nigerians in the freezing of their accounts.
“The burgeoning number of accounts being frozen by the CBN in Nigeria appears to be taking a huge toll on the nation’s economy and livelihood of millions of Nigerians and underscores the seeming flagrant abuse of this power by the CBN when compared to the Central Banks”, he said.
He expressed worries “about innumerable allegations from affected Nigerians that the CBN in its claim of exercising the CBN Governors powers to freeze bank accounts under Section 608 of the Banks and Other Financial Institutions Act (BOFIA) 2004, incessantly violates Nigerians the fundamental human right to a fair hearing and presumption of innocence until proven guilty as enshrined in Section 36 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) when it freezes accounts arbitrarily for extended periods without the knowledge of the account holder, the provision of an opportunity for the account holder to provide an explanation or referral of the matter to section 608 as an appendix to the 2004 amendment of the BOFIA after it was omitted from the body of the act in the 2004 Laws of the Federation of Nigeria (LFN) also raises concerns about whether this section was legitimately signed into law at the time”.
He expressed concerns ” about the plethora of impending litigation against the CBN which every Nigerian constitutionally has the right to Institute but that will distract the CBN from its primary statutory functions and unnecessarily expend monumental taxpayers funds for the acquisition of legal representation by the CBN which should ordinarily have been avoided but for the Indiscretion of its employees”.
The House in adopting the Motion resolved to “Ask the CBN to within 48hrs commence a review of ALL currently frozen accounts in Nigeria and to after one week remove the freeze order on accounts frozen under the following clear violations of the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and Section 608 of BOFIA 2004; a) Accounts frozen before a valid court order was obtained. b) Accounts frozen without obtaining a court order from the required court of competent jurisdiction”.
The lawmaker lamented that accounts were frozen without providing the opportunity for a fair hearing to the holders of the accounts. “Accounts were frozen but till date have not been referred to the Nigeria Police Force. National Drug Law Enforcement Agency or any other appropriate regulatory authority for investigation.
“Accounts were frozen that are unconnected to the account suspected for involvement in the commission of a crime. “Accounts remaining frozen after a court-authorized period of freeze has elapsed without obtaining a fresh order from a court of competent jurisdiction”, he stated.
He said the “Accounts frozen without documentary proof of petition or reason for suspicion of involvement in the commission of a crime”.
The House also resolved to “Mandate the House Committee on Banking and Currency to immediately invite all relevant and affected stakeholders to a public investigation of circumstances surrounding the freezing of all accounts currently frozen by the CBN in Nigeria with a view to identifying any cases of contraventions of statutory provisions by the CBN in the freezing of accounts”.
He said “Provisions of the subsisting enabling act that might require immediate amendment considering the tendency for abuse by the CBN, ambiguity of related Clause(s), contradictions with provisions of other subsisting legislation, jurisprudence or global best practice and controversy surrounding the addition of related Section of the Act after the amendment of the section on 608 as an appendix to the 2004 amendment of the BOFIA after It was omitted tom the body 01 the act In the 2004 Laws of the Federation 0! Nigeria (LFN) also raises concerns about whether this section was legitimately signed Into law at the time”.
He expressed concerns ” about the plethora of Impending litigation against the CBN which every Nigerian constitutionally has the right to Institute but that will distract the CBN from its primary statutory functions and unnecessarily expend monumental taxpayers funds for the acquisition of legal representation by the CBN why should ordinarily have been amended but for the indiscretion of Its employees.
The House resolved to be” Ask the CBN to Within 48hrs commence a review of all currently frozen accounts in Nigeria and to after one week remove the freeze order on accounts frozen under the following clear Violations of the provisions of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and Section 608 of BOFIA 2004″
The House mandated ” the House Committee on Banking and Currency to immediately invite all relevant and affected stakeholders to a public investigation of circumstances surrounding the freezing of all accounts currently frozen by the CBN in Nigeria with a view to identifying any cases of contraventions of statutory provisions by the CBN in the freezing of accounts.
“Any verifiable cases of victimization or vendetta against account holders by the CBN in the freezing of their accounts. “Provisions of the subsisting enabling act that might require immediate amendment considering the tendency for abuse by the CBN. the ambiguity of related clause(s). contradictions with provisions of other subsisting legislation. jurisprudence or global best practice and controversy surrounding the addition of related Section of the Act after the amendment of the act had been published in the Laws of the Federation of Nigeria (LFN) 2004.
“Whether appropriate sanctions will be required to be recommended against erring staff of the CBN including the Governor especially when the administration of related provisions of the act is in the Governor’s name. The Committee will be required to submit a formal report to the House in Four (4) weeks for further legislative action”.
PalmPay, one of Africa’s leading digital financial services companies, is considering a listing on the Hong Kong Stock Exchange after attaining a valuation of more than one billion dollars, according to a Bloomberg report.
PalmPay
The report, citing sources familiar with the matter, said the fintech company was also seeking to raise between 150 million dollars and 200 million dollars in fresh funding ahead of a potential Initial Public Offering (IPO).
According to the sources, the additional capital is expected to support PalmPay’s next phase of expansion across Africa and selected Asian markets.
If completed, the IPO would rank among the most significant public market debuts by an African fintech company and could encourage other technology firms on the continent to explore listings beyond the traditional financial centres of London and New York.
Founded in 2019, PalmPay has emerged as one of Africa’s fastest-growing consumer fintech platforms, providing digital payments, money transfers, savings, lending and merchant payment solutions.
The company has established its strongest market presence in Nigeria while expanding operations into Ghana, Tanzania and Bangladesh as part of its international growth strategy.
PalmPay says it currently serves more than 35 million registered users and supports over one million businesses and merchants, processing millions of transactions daily.
Its rapid growth has positioned it among Africa’s leading fintech firms, alongside companies such as Flutterwave, Moniepoint, OPay, Wave and Onafriq.
Unlike many technology startups that have prioritised rapid customer acquisition over profitability, PalmPay reportedly achieved profitability in 2025, a development analysts say could enhance investor confidence as the company prepares for another fundraising round and an eventual stock market listing.
The report noted that Hong Kong could offer strategic advantages for PalmPay due to its strong commercial ties with Asian investors and the company’s growing presence in emerging Asian markets.
PalmPay’s early investors include Transsion Holdings, the maker of the Tecno, Infinix and itel smartphone brands, as well as investors linked to NetEase and MediaTek.
Industry analysts believe these long-standing relationships could make Hong Kong a natural destination for PalmPay’s public listing while broadening access to investors already familiar with its business model.
The company’s IPO plans come as venture capital investment in African startups has slowed considerably since the record funding years of 2021 and 2022, prompting many technology firms to focus on profitability, stronger balance sheets and sustainable long-term growth.
Against that backdrop, PalmPay’s proposed fundraising and listing are expected to serve as an important test of international investor appetite for profitable African fintech companies.
The company’s valuation also underscores the resilience of Africa’s digital payments sector, driven by rising smartphone adoption, expanding internet access and increasing demand for cashless transactions across the continent.
Although PalmPay has yet to make a final decision on either the fundraising or the IPO timetable, the reported preparations indicate that the company is positioning itself for its next phase of growth.
Industry observers say a successful Hong Kong listing could provide fresh momentum for Africa’s technology sector and create an alternative pathway for high-growth startups seeking access to global capital markets.
Hackers have hit the database of Zenith Bank, one of Nigeria’s largest financial institutions, stealing customers’ information.
Zenith confirmed the attack in an email to customers on Tuesday.
The bank said the hackers accessed limited customer information, “including email addresses and phone numbers, during a cyberattack that forms part of a broader global attack on organisations across different sectors”.
The lender stressed that the incident involved only limited customer information, adding that its banking services and digital channels remain secure and fully operational.
The bank said it is investigating the attack, noting that its incident response protocols and other cybersecurity measures were immediately activated after the breach was discovered.
“As a precaution, we encourage our customers to remain vigilant against phishing emails, text messages, or phone calls, and to never disclose their password, PIN, One-Time Password (OTP), or other security credentials to anyone,” the bank said.
Zenith Bank said it remains committed to protecting customers’ information and thanked them for their continued trust, adding that investigations into the incident are ongoing.
In August 2024, Guaranty Trust Bank (GTB) reported experiencing a similar incident.
The commercial bank said there were attempts to compromise its website domain, but customers’ data was not affected.
The latest attack comes months after the Central Bank of Nigeria (CBN) warned the public of cyber hack attempts to gain access to personal accounts of Nigerians.
The CBN said the hackers were circulating fraudulent messages and emails falsely claiming to originate from the bank.
According to the financial regulator, there were misleading messages circulating, designed to deceive Nigerians and compromise their personal information.
The regulator said the fake communications, which include emails and online messages, often prompt recipients to click suspicious links while spreading false claims about the bank’s leadership, licensing activities, and policy decisions.
Nigerians lost N25.85 billion to digital payment fraud in 2025, according to Central Bank of Nigeria (CBN).
Though the figure represents a significant decline from the N52.26 billion recorded in 2024, CBN, said the losses remained substantial for payment service providers (PSPs).
According to the report, although the value of digital payment fraud declined significantly year-on-year, when compared to the N52.26 billion recorded in the previous year, the losses remained substantial for Payment Service Providers (PSPs), underscoring the need for stronger fraud prevention measures across the industry.
In the report, the CBN, also identified systemic risks, cyber threats, the dominance of a few systemically important payment service providers, and the activities of unlicensed payment companies as major concerns confronting the financial sector.
According to the report, although the value of digital payment fraud declined significantly year-on-year, the losses remained substantial for Payment Service Providers (PSPs), underscoring the need for stronger fraud prevention measures across the industry.
“Digital payment fraud in Nigeria stood at N25.85 billion in 2025,” the apex bank said.
It noted that while this represented a considerable improvement from the N52.26 billion lost in 2024, the amount remained significant.
“Though this was lower than N52.26 billion in the preceding year, it represented a substantial loss for PSPs,” the report stated.
The CBN attributed the reduction in fraud losses to enhanced security measures implemented across the financial sector.
It said, “The lower losses in 2025 reflected improvements in monitoring, BVN-NIN integration, and tighter controls.”
Beyond fraud, the report warned that Nigeria’s rapidly expanding digital payments landscape faces increasing systemic vulnerabilities as banks and fintech companies become more interconnected through shared payment infrastructure.
According to the report, a major operational failure involving a single payment service provider could quickly spread across the financial system because of the growing dependence on integrated payment platforms.
The CBN observed that despite ongoing efforts to strengthen payment system integration, interoperability remains a significant challenge.
It disclosed that about half of fintech stakeholders continued to express dissatisfaction with the current level of system-wide interoperability.
The report stated that “about 50.00 per cent of fintech stakeholders continued to rate system-wide interoperability as poor, primarily due to the lack of universal APIs and data-sharing standards.”
The apex bank also expressed concern over the concentration of payment activities among a few Systemically Important Payment Service (SIPS) providers, warning that operational failures involving any of them could have widespread consequences.
It explained that the failure of such providers could trigger a “domino effect”, where insolvency or operational glitches in one payment service provider spread rapidly to others, disrupting the smooth functioning of the financial system.
Cybersecurity also featured prominently among the risks identified in the report.
The CBN warned that payment service providers remain vulnerable to ransomware attacks, data breaches and credential theft, noting that cybercriminals are becoming increasingly sophisticated in targeting financial institutions.
According to the report, “Banking and fintech institutions remained prime targets for ransomware, data leaks, and credential theft.”
It added that, “Cyber threats in Nigeria are no longer random cybercrimes, but increasingly targeted, organised, and identity-driven campaigns.”
The report further cautioned Nigerians against transacting with unlicensed payment companies, stressing that such entities operate outside regulatory oversight and expose users to significant financial risks.
It warned that customers using unlicensed PSPs are not protected by existing regulatory safeguards and that such operators could facilitate illicit financial activities.
“Users of unlicensed PSPs are not covered by regulatory protection that comes with effective oversight and supervision,” the CBN said.
It further warned that, “Unlicenced payment companies are gateways for money laundering which could undermine regulatory efforts and corrode public trust.”
The report underscores the growing importance of strengthening fraud detection systems, improving payment infrastructure interoperability, enhancing cybersecurity resilience, and intensifying regulatory oversight as Nigeria continues to expand its digital payments ecosystem.
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