The Federal Government of Nigeria plans to suspend Lemonade Bank’s operations and other IMTOs in and outside the country. This move is part of a larger effort to control forex in the country.
Lemonade Finance allows people outside Nigeria to send money home instantly and for free, an operation the government considers legal and poses to suspend.
The Central Bank of Nigeria has accused Lamonade and others of aiding and abetting criminals in transferring their proceeds within and outside the country.
The CBN has directed all commercial banks in Nigeria to close suspicious accounts belonging to the organizations and warned the public not to transact with them.
The CBN claimed it has been having fears of its activities as they disrupt market dynamics.
Apart from the suspicion of economic sabotage, the apex bank is also concerned about national security, as the platforms are also patronised by kidnappers for the payments of ransom.
The federal government has banned and fined a similar platform, Binance, to rein in speculation about the naira.
There are growing concerns regarding the move to put Lemonade and others on the ban list.
Lemonade was founded in 2020 by Nigerians Ridwan Olalere, Rian Cochran, and Dayo Koleowo.
The businessmen joined resources to float Lamonade and built a borderless money app for Africans in the diaspora.
