The federal government has declared the activities of Fintech companies, such as Bamboo and Trove, as illegal. 

The Security and Exchange Commission, in a post titled “Proliferation of Unregistered Online Investment and Trading Platforms facilitating access to trading in Securities listed in Foreign Markets”, urged these platforms to desist from enabling Nigerians access securities listed by foreign companies in other countries.

It reads; “the Commission categorically states that by the provisions of sections 67-79 of the Investments and Security Act…and Rules 414 & 415 of the SEC rules and Regulations, only foreign securities listed on any exchange registered in Nigeria may be issued, sold or offered for sale or subscription to the Nigerian Public.”

This announcement follows the trend of Nigerians who are currently investing in the U.S. stock market and hedging against the currently weakening naira.

Fintech platforms such as Bamboo and Trove give Nigerians real-time access to invest in or trade over 3,500 stocks listed on the American and Nigerian exchanges right from their smartphones or personal computers.

The fintech firms, including Risevest and Bamboo, have issued statements assuring customers of the safety of all investments. They also promised to work with Nigerian regulators to resolve all outstanding issues around their operations in Nigeria.

Editor’s Note: The headline and the body of this story have been corrected to show that the Nigerian government only warned the regulated companies dealing with unregulated firms. The fintech firms were not shut down.