Sycamore has reassured customers that its lending and investment businesses remain fully operational after the Central Bank of Nigeria (CBN) revoked the operating licence of Sycamore Microfinance Bank.
The fintech explained that the affected entity was a recently acquired microfinance bank that had not become part of its core operations.
In an interview with Techeconomy, Babatunde Akin-Moses, the company’s co-founder and CEO, said the licence revocation relates only to the microfinance banking entity it acquired in Kano State as part of plans to expand into deposit-taking and payment services.
“The licence revocation relates to a microfinance banking entity that Sycamore had recently acquired in Kano State as part of our long-term strategy to expand into deposit-taking and payments,” Akin-Moses said.
He added that he would not comment on the regulator’s findings because the matter is still before the appropriate authorities.
“As the matter involves an ongoing regulatory process, we won’t be able to comment on the specific findings at this stage. We remain respectful of the CBN’s regulatory role and are engaging through the appropriate channels.”
The clarification comes after the CBN announced the revocation of operating licences of 46 microfinance banks across the country, including Sycamore MFB, over failure to meet regulatory requirements.
Addressing concerns about the relationship between the revoked microfinance bank and the Sycamore business, Akin-Moses said the two should not be treated as the same operation.
According to him, the microfinance bank was “a separate licensed entity” that the company had recently acquired and was still integrating into the group.
“Sycamore MFB was a separate licensed entity that we had recently acquired and were in the process of integrating into the Sycamore Group.”
Akin-Moses said the company’s consumer lending business operates under approval from the Federal Competition and Consumer Protection Commission (FCCPC), while Sycamore Investment and Asset Management Limited (SIAML) remains licensed by the Securities and Exchange Commission (SEC).
“The licence revocation does not affect our core businesses. Our consumer lending operations continue to operate under FCCPC approval, while Sycamore Investment and Asset Management Limited (SIAML) continues to operate under its SEC licence. Customers can continue to save, invest, borrow, and transact through our existing platforms as usual.”
The CEO also sought to calm concerns from users who may be worried about the safety of their money following the CBN’s move.
“There is no impact on customers using Sycamore’s existing lending and investment services. Our platform remains fully operational.”
“All customer funds and investments held through our existing businesses remain safe and fully accessible. Customers can continue to use our services as they normally would,” he added.
Clarifying if the company plans to challenge the revocation, Akin-Moses said discussions with regulators are ongoing but declined to give further details.
“We are reviewing the development and engaging through the appropriate regulatory channels. At this stage, we believe it is best to allow those processes to run their course and will not be commenting further on them.”
Akin-Moses further noted that customers should expect normal service while the regulatory process continues.
“Our message to customers is straightforward: Sycamore remains fully operational, and all customer funds and investments remain safe and secure.
“We remain committed to the highest standards of governance, transparency, and regulatory compliance. Customers should expect business as usual from Sycamore, and we will continue to provide updates whenever there are material developments.”
The CBN revoked the licences of the microfinance banks with immediate effect, citing provisions of the Banks and Other Financial Institutions Act, 2020.
The regulator said the affected institutions did not meet regulatory requirements, including conditions tied to their licences.
