A federal high court in Abuja has issued an order for the temporary unfreezing of accounts belonging to two prominent fintech companies, Bamboo Systems Technology Limited and Bamboo Systems Tech. Ltd. This significant development comes three weeks after the Central Bank of Nigeria (CBN) initially secured a federal high court order to freeze the accounts of these and several other fintech firms. The primary rationale behind this partial variation of the earlier order is to enable Bamboo Systems Technology Limited to fulfill critical financial obligations, specifically the payment of staff salaries and rent.

The initial freezing directive, intended to last 180 days to facilitate a comprehensive investigation by the CBN, also impacted Rise Vest Technologies Limited, Chaka Technologies Limited, and Trove Technologies Limited, in addition to the Bamboo entities. The CBN's counsel, Chief Michael Kaase Aondoakaa, SAN, had leveled serious accusations against these fintech companies, alleging their complicity in the depreciation of the Nigerian Naira against the United States dollar. Furthermore, the CBN claimed that these investment startups were operating as asset management companies without possessing the requisite licenses from the regulatory authorities.

In response to the blanket freezing order, the affected companies, particularly Bamboo Systems Technology Limited, filed an application with the court seeking a variation. Their argument centered on the urgent need for access to funds to manage essential operational expenses such as employee salaries and property rent. During the court proceedings on Tuesday, September 7, Chiezohu Okpoko, counsel to Bamboo Systems Technology Limited, informed the court that his clients were also actively pursuing an amicable resolution to the complex matter.

Crucially, Chief Michael Aondoakaa, the CBN's counsel who had originally filed the ex-parte motion to freeze the accounts, did not oppose the application for a partial variation. He stated, "We agree to a partial variation to the extent of what they have asked for with regard to paying rent, salaries and an amicable settlement." Following these submissions, the presiding judge, Justice Ahmed Mohammed, granted the request. His ruling explicitly ordered the accounts of Bamboo Systems Technology Limited and Bamboo Systems Tech. Ltd. to be unfrozen solely for the purposes of enabling the companies to disburse rent payments for their occupied properties, remunerate their workers, and facilitate an amicable settlement process.

Although the matter has been formally adjourned until February 2022, there are tangible indications that a resolution might be reached sooner. This optimistic outlook is largely predicated on the willingness of the fintech companies to strictly adhere to the established guidelines of the CBN. Chief Aondoakaa himself acknowledged the fintechs' desire for an amicable settlement, reiterating that they sought partial variation to access funds for rent and salaries, alongside a peaceful resolution. His decision not to oppose the application suggests a degree of mutual trust between the parties involved. Furthermore, the CBN's counsel confirmed the regulatory body's openness to an amicable settlement, emphasizing, "We are not opposed to this, and we are open to an amicable settlement, all we want is that they should operate within the guidelines of the law." This fosters hope that other implicated fintech startups, such as Risevest, Chaka, and Trove, are also being included in these ongoing amicable resolution discussions. Notably, Rise Vest Technologies Limited had previously assured its customer base of its commitment to collaborate with regulators to address all raised concerns appropriately.