Sycamore, a financial technology (fintech) company, says its operations remain fully active after the Central Bank of Nigeria (CBN) revoked the licence of a microfinance bank it acquired in Kano state in May.
On Thursday, the fintech said the microfinance bank was
acquired as part of its expansion into deposit-taking and payments services.
The company said it was still in the process of integrating
the entity into its group and operational infrastructure when the licence was
revoked following a CBN sector-wide compliance review.
“Sycamore confirms that a microfinance banking entity it had
recently acquired in Kano state is among the 46 microfinance banks whose
licences were revoked by the Central Bank of Nigeria on July 1, 2026,” the
statement reads.
“Sycamore had acquired the entity as part of its planned
expansion into deposit-taking and payments. The company was in the process of
establishing its integration into its group and operational infrastructure for
the entity when the licence was captured in the CBN’s sector-wide compliance
review.”
The company said all customer funds and investments remain
safe and fully accessible.
“Sycamore’s existing operations remain fully active. Its
consumer lending platform operates under FCCPC approval and Sycamore Investment
and Asset Management Limited (SIML) holds a current SEC licence. All customer
funds and investments are secure and fully accessible,” the fintech company
added.
In a separate message to customers, Babatunde Akin-Moses,
chief executive officer and co-founder of Sycamore, said on X that the
company’s app is fully functional, and customers can continue to save, invest,
borrow, and transact as usual.
“We remain committed to the highest standards of governance,
transparency, and regulatory compliance, and we will continue to keep our
customers and stakeholders informed as appropriate,” he added.
Akin-Moses added that the company’s customer experience team
was available around the clock to attend to enquiries.
Sycamore said it would provide further updates as the
situation progresses.
On Wednesday, the CBN revoked the operating licences of 46
microfinance banks, including Sycamore MFB in Kano, saying the affected
institutions failed to meet regulatory requirements.
The apex bank cited reasons including insufficient assets to
meet liabilities, inactivity, closure without approval, failure to commence
operations within the stipulated period, and failure to maintain the required
minimum capital.
Following the licence revocation, the Nigeria Deposit
Insurance Corporation (NDIC) said it had commenced the liquidation of the 46
affected microfinance banks after being appointed their official liquidator.
NDIC also began the verification and payment of insured
deposits to eligible customers, warning the public against transacting with the
failed lenders or interfering with their assets.
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