Nigerian online banking platform, Eyowo, has announced that it will be shutting down its operations on Tuesday, June 27th. The decision to close down was communicated to the company’s staff and stakeholders via a mail, and it has been confirmed by a reliable source within the company.
In the mail, Eyowo stated that it has been unable to uphold its purpose and values due to the numerous challenges it has faced in the first half of this year, as well as in previous years. These difficulties have significantly hindered the company’s ability to fulfil its obligations.
Their closure was announced after the Central Bank of Nigeria (CBN) imposed some regulatory sanctions on banks.
Recently, the Central Bank of Nigeria (CBN) made the decision to revoke the license of a digital bank, along with the licenses of 46 other microfinance institutions. The apex bank took this action because these 47 microfinance banks were either inactive, insolvent, failed to submit returns, shut down, or ceased conducting banking business despite holding licenses for more than six months.
As a consequence of the revocation of its Microfinance operating license, the digital bank informed its customers that they would be unable to send or receive money from their accounts for a certain period. Understandably, this phase raised concerns among customers regarding their inability to perform transactions. Nevertheless, Eyowo reassured its customers that there was no need for alarm and affirmed its commitment to ensuring the security of their funds. The company apologized for any inconveniences caused during this period.
At the beginning of the month, Yomi Adedeji, the co-CEO of Eyowo, announced that the company would soon resume its financial services using its Payment Solution Service Providers (PSSP) license. Adedeji provided an update to customers, stating that the bank is now 98.8% prepared to resume its activities. He emphasized that Eyowo, as one of the 75 companies licensed by the CBN as PSSPs, will continue to offer its payment services.
The co-CEO urged customers to bear in mind that Eyowo is fully supported by the CBN through its PSSP license, allowing them to continue providing the services enjoyed on the platform. Additionally, Eyowo has partnered with Providus Bank to facilitate interbank transactions. The bank has already begun connecting its tier 2 and 3 customers to new accounts and intends to send emails detailing the steps customers should take to resume their transactions.
Eyowo expressed appreciation for its partner, Providus Bank, for proactively providing the necessary support to restore all Eyowo services for customers and their businesses. The partnership between the two institutions has been described as one of great potential.
Following the decision made by the CBN, the company expressed regret at having to dissolve all its processes, procedures, responsibilities, and departments. Eyowo had long held human-centered values, but it no longer recognizes them within the company’s current reality and its capacity to take action.
Eyowo attributed its closure to various market complications, particularly mentioning the recent actions of the Central Bank of Nigeria (CBN) as a significant factor. These actions have cast doubt on investments that could have supported the company and its employees and stakeholders.
While they acknowledged the immense difficulty it has caused its staff and stakeholders, they expressed remorse for any negative impact on their mental and emotional well-being during this period of closure.
While Eyowo X and Eyowo offices will continue to exist as products, the company has announced the replacement of Kwiksell with a purchased product that can provide similar functionalities. A small group of staff will be retained to focus on product innovation and customer support in the market.
Furthermore, Eyowo assured its employees that it will fulfill all outstanding salary payments and obligations within a timeframe of 3-14 days. The company aims to settle these financial matters promptly to minimize any additional hardship for its employees.
Overall, Eyowo’s decision to shut down its operations reflects the challenges it has faced in recent times, including market complications and the impact of regulatory actions.
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