Moniepoint, a Nigerian cash-transfer startup, raised $110 million in an equity sale to expand in home market and across Africa, Tosin Eniolorunda, founder and chief executive said.

The Series C funding round, backed by an Africa investment fund owned by Google and Development Partners International LLP, will enable the firm start cross-border remittances and extend banking services into francophone African countries,  according to Eniolorunda.

“We are at different levels of engagement for approvals to do remittances,” Eniolorunda said in an interview. “We want to deploy banking to other countries.”

Founded in 2015 to provide infrastructure and payment solutions in Africa’s most populous nation, Moniepoint has seen rapid expansion taking advantage of Nigeria central bank’s cashless drive and widespread insecurity that has promoted the use of digital platforms for payments, according to Eniolorunda.

The Financial Times earlier reported that the funding round gives the company so-called unicorn status, or a value of more than $1 billion, citing unidentified people familiar with the company.

That puts the firm in the ranks of other players like Flutterwave, OPay and Jumia Technologies AG that have all achieved or surpassed the elusive valuation by exploring the Nigerian market.

Moniepoint processes 800 million transactions, worth about $17 billion every month, according to Eniolorunda.

The company is looking to start inventory management “soon” to complement other banking services including debit cards, savings, lending and payments, he said.

Federal Competition and Consumer Protection Commission (FCCPC) has issued a stern warning to banks in Nigeria regarding the disruptions to online banking services.

The commission expressed concern that these disruptions hinder customers from accessing funds, making payments, and completing essential transactions.

In a statement on Tuesday, Mr Tunji Bello, executive vice chairman and chief executive officer, FCCPC, emphasised that “these disruptions have negatively impacted millions and have serious implications for individuals and businesses alike.”

The commission highlighted that under the Federal Competition and Consumer Protection Act of 2018, customers have rights that ensure fair and accountable service delivery, including the right to quality service.

Bello added that the commission is currently collaborating with relevant regulatory authorities and financial institutions to address the service disruptions and ensure consumer protections are enforced.

“The FCCPC is actively working with relevant regulatory authorities, financial institutions, and stakeholders to address these disruptions and ensure the protection of customers. The commission will pursue all necessary actions to uphold the protections of the FCCPA,” Bello assured.

The FCCPC noted that when banks fail to maintain access to essential services, they may breach these standards, potentially leading to “significant financial hardship, loss of trust in the banking system, and damage to the overall economy.”

Bello stated that as Nigeria’s economy shifts toward a cashless system, interruptions to online banking are becoming more than mere inconveniences; they are perceived as violations of consumer rights.

The commission further stressed that service providers are obligated to be transparent and communicate effectively during service disruptions.

“Regrettably, many consumers are left in the dark,” the FCCPC stated, which increases frustration and feelings of neglect among customers.

Bello noted that the lack of clear communication constitutes a failure to meet the FCCPA’s standards for consumer rights.

In response to these ongoing issues, the FCCPC is reviewing the situation to determine if customers’ rights to redress are being upheld.

“We urge banks and financial institutions to take swift action to restore services, prioritize customer support, and enhance communication,” he said.

Bello assured affected customers that their concerns are being taken seriously, stating, “We are committed to safeguarding the rights of Nigerian consumers and ensuring that every service provider adheres to the statutory mandates provided in the FCCPA 2018.”

Customers experiencing issues are encouraged to report their complaints through the FCCPC’s website or email.

House of Representatives on Tuesday passed into second reading, a bill seeking to protect victims of fraudulent withdrawal from bank accounts.

They overwhelmingly supported the proposed legislation, which seeks to impose stiffer sanctions on money deposit banks involved in unauthorised transactions and deductions from the accounts of unsuspecting customers.

Titled, “A Bill for an Act to Amend the Banks and Other Financial Institutions Act (BOFIA), 2020 to make Provision for the Protection of Victims of Fraudulent withdrawal from Accounts and for Related Matters (HB.1168),” the proposed legislation is sponsored by Hon. Moses Oluwatoyin Fayinka (APC, Lagos).

Leading debate on the general principles of the bill, the lawmaker,said the proposed legislation seeks to stop illegal fund transactions where monies are moved from the customer’s account without the authorisation of the customer for such transactions to take place.

He said, “There is an alarming rise of bank fraud or unauthorised withdrawal of deposit funds in Nigeria. In the banking industry, about 101,801 cases were reported in 2022 and 48,703 cases were reported in 2023, making bank customers lose several billions of naira.

“This Bill is in consideration of the uprising of various financial crimes within the country, with many of such passing through financial institutions, or we can call it the commercial banking system.”

The lawmaker called the attention of his counterparts, Saying, ”We all know that virtually all banking transactions are done electronically, which means that transactions can either be ATM, POS, direct cash transfer, fast cash, and many others, in which many bank customers have fallen victim and have lost their hard-earned fortune without help from any side.

“The bank has the obligation to protect customers’ funds by way of monitoring its movement. Most of us here today, before money leaves our account, the bank, through its account officers, makes contacts to know if the customer is in authorisation of such a transaction; however, banks have neglected the duty of protecting their customers as regards the safeguarding of their monies in the case of e-transactions.”

He said when passed, the piece of legislation would stop banks from covering up such syndicates without reporting such action to the receiving bank and the police for necessary actions.

“For the banks, both the paying and receiving banks to get the culprit arrested and prosecuted and to pay all necessary bills in the course of the recovery processes, make a refund back to the victim’s account without charges,” he said.

The lawmaker added that, “The amendment will go a long way to curtail electronic means of funds stealing that pass through the banking platforms to their destination, and as we know its nature, these amendments are long overdue.”