Nigerians are conducting trade online through various online investment and trading platforms, and the Federal High Court in Abuja has granted an exparte motion that sought the temporary freezing of bank accounts belonging to specific fintech companies with online investment and trading platforms.
The petition was filed by Chief Micheal Kaase Aondoakaa, SAN, on behalf of the Governor of the Central Bank of Nigeria(CBN) with the goal of investigating the defendants’ financial operations in Nigeria.
Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Bamboo Systems Technology Ltd OPNS, Chaka Technologies Limited, CTL/Business Expenses, and Trove Technologies Limited are the defendants.
Aondoakaa informed Justice Ahmed Mohammed that the foreign exchange transactions conducted with the defendants were a contributing factor to the Naira’s depreciation against the United States dollar, and that, as a result, 15 of their accounts were required to be blocked for about 180 days.
CBN Senior Supervisor Christiana Gyang swore an affidavit in which she stated that the apex bank had conducted an investigation into the activities of these platforms to identify their alleged involvement in unlawful foreign currency (FX) transactions.
According to Gyang, the inquiry revealed that the platforms were in violation of Nigeria’s trade regulations at the time.
According to the Central Bank of Nigeria the fintech companies, Rise Vest Technologies Limited, Bamboo Systems Technology Limited, Chaka Technologies Limited, and Trove Technologies Limited were complicit in operating without a license as asset management companies “and utilizing foreign exchange obtained from the Nigerian foreign exchange market for the purpose of buying foreign bonds/shares in violation of the CBN circular cited TED/FEM/FPC/GEN/01/012, dated July 1, 2015.”