Sycamore assures customers after CBN revokes acquired microfinance bank licence

Sycamore, a Nigerian fintech company, has confirmed that one of its recently acquired microfinance banks is among the 46 institutions whose licences were revoked by the Central Bank of Nigeria (CBN) on July 1, 2026. The company has assured customers that its operations remain fully functional and all customer funds are secure.

Acquired bank not yet fully integrated

In a statement issued on Thursday, July 2, Sycamore explained that the affected institution was a microfinance bank it acquired in May as part of its strategy to expand into deposit-taking and payment services. The company said the acquired entity had not yet been fully integrated into Sycamore's operational and regulatory structure before it was included in the CBN's sector-wide compliance review.

Sycamore stressed that the development does not affect its existing businesses or customer funds. It noted that its consumer lending platform continues to operate under the approval of the Federal Competition and Consumer Protection Commission (FCCPC), while Sycamore Investment and Asset Management Limited (SIML) remains licensed by the Securities and Exchange Commission (SEC).

All customer funds and investments are secure and fully accessible, the company stated, adding that its services remain available without interruption.

CEO reassures customers

In a separate message on X, Sycamore Chief Executive Officer and co-founder Babatunde Akin-Moses reassured customers that the company's app remains fully operational. He said users can continue to save, invest, borrow and carry out transactions as usual.

Akin-Moses added that Sycamore remains committed to strong corporate governance, transparency and full regulatory compliance, while promising to keep customers and stakeholders informed of further developments. He also disclosed that the company's customer support team is available around the clock to respond to enquiries.

CBN revokes licences of 46 microfinance banks

On July 1, the CBN revoked the licences of 46 microfinance banks, including Sycamore MFB in Kano, citing persistent failure to comply with regulatory requirements. According to the apex bank, the affected institutions were sanctioned for reasons including inadequate assets to meet liabilities, prolonged inactivity, unauthorised closure of operations, failure to commence business within the approved timeframe, and inability to maintain the minimum capital requirement.

Following the revocation, the Nigeria Deposit Insurance Corporation (NDIC) announced that it had commenced the liquidation of the affected banks after being appointed as their official liquidator. The corporation also began verifying and paying insured deposits to eligible customers while warning Nigerians against conducting transactions with the failed banks or interfering with their assets.

Legit.ng earlier reported that the CBN has introduced a new rule limiting the suspension of payment and delivery obligations involving troubled banks and other financial institutions to a maximum of two business days. The directive, which takes immediate effect, aims at reducing uncertainty in Nigeria's financial system and improving confidence among banks, investors, and other counterparties dealing with institutions facing financial distress.

The clarification comes shortly after the CBN revoked the licences of 46 microfinance banks, underscoring its continued efforts to strengthen financial sector stability.