By Adedapo Adesanya

Brass, a Nigerian business banking startup, will cease operating as an independent company and transfer its customers to Paystack Microfinance Bank (MFB) as part of a strategic transition.

In a statement on Monday, Brass said interested customers would be migrated into Paystack MFB before July 31, 2026, as the company integrates its business banking operations into Paystack’s regulated banking infrastructure.

“Brass will move its business banking into Paystack MFB. As part of this transition, Brass will no longer operate as an independent entity,” the company said in the statement.

In May 2024, a Paystack-led consortium acquired Brass for an undisclosed amount in a deal that saved the company, which was plagued by a liquidity crisis. Others in the consortium that rescued the firm include PiggyVest, Ventures Platform, and P1 Ventures.

Founded in 2020 by Mr Sola Akindolu and Mr Emmanuel Okeke, Brass built a digital banking platform for small businesses, offering business accounts, payroll tools, expense management, and cash-flow tracking.

Three years after it was established, it faced a crisis that saw it struggle to process customer withdrawals, prompting complaints from several entities who could not access their company funds and raising concerns about trust in digital financial services.

The new ownership saw an overhaul as well as some changes, which included co-founders Mr Akindolu and Mr Okeke exiting the business.

In the announcement, Brass said the months following the acquisition were spent rebuilding internal systems and operational processes under a new leadership team led by Mr Philip Obosi and Mr Yvonne Obike.

“As we rebuilt and as our platform became more mature, something became increasingly clear,” the company said. “The next phase of our growth could not be achieved alone.”

“This transition marks a new chapter, with even greater capability for the businesses we serve. And this is only the beginning,” the statement added.

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has extended the deadline for enforcement of its mandatory Point of Sale (PoS) terminal geo-fencing framework to August 1, giving payment service providers an extended compliance window.

The postponement was disclosed in a circular signed by the CBN Director of the Payments System Supervision Department, Ms Rakiya Yusur.

In August 2025, the CBN directed that all PoS terminals in the country be geo-tagged within 60 days as part of measures to curb fraud and strengthen oversight of digital payments under ISO 20022 standards.

The directive requires all players in Nigeria’s payments ecosystem, including Deposit Money Banks (DMBs), Microfinance Banks (MFBs), Mobile Money Operators (MMOs), Super Agents, and switching companies, to adopt the ISO 20022 messaging standard and geo-tag all payment terminals.

The new extension shifted the enforcement date to August 1, giving operators additional time to complete technical and operational requirements.

The apex bank also increased the permissible geo-fence radius for PoS terminals from 10 metres to 70 metres.

Additionally, the CBN postponed the enforcement date for compliance with the geo-fencing requirement as part of adjustments to the framework.

“Further to the Circular with reference number PSS/DIR/PUB/CIR/001/001 dated August 25, 2025, on migration to ISO 20022 standards for payments messaging, mandatory geotagging of payment terminals, and various stakeholders’ engagement on the subject to address the operationalisation of the Circular, the Central Bank of Nigeria has considered and approved the following:

“Geo-fence radius is hereby increased from 10 metres to 70 metres. Enforcement of PoS Terminal Geo-fence is extended to August 1, 2026,” the central bank stated.

Geo-fencing requires PoS terminals to operate only within approved geographic locations linked to registered merchants and agents.

The policy aims to strengthen transaction monitoring, curb abuse of payment channels, and improve the integrity of Nigeria’s payment system.

The central bank also ordered all affected institutions to submit evidence of compliance to the CBN’s Payments System Supervision Department no later than 31 July.

The CBN added that financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance.

“Evidence of compliance with the above should be addressed to the Director, Payments System Supervision Department via pa*********@*****ov.ng not later than 31 July, 2026.

“Financial institutions are required to resolve all operational issues with the National Central Switch within the stipulated timeline to ease compliance,” the CBN stated.

By Adedapo Adesanya

A Federal High Court sitting in Lagos has fixed July 20 for judgment in a suit filed by the Wireless Application Service Providers Association of Nigeria (WASPAN) challenging the legality of the Digital, Electronic, Online, and Non-traditional Consumer Lending Regulations (DEON Regulations) issued by the Federal Competition and Consumer Protection Commission (FCCPC).

‎Justice Ambrose Lewis-Allagoa handed down the date after parties adopted their final written addresses and concluded arguments in the matter marked FHC/L/CS/760/2026.

‎‎The proceedings, held at the court’s Ikoyi division on Monday, featured extensive legal arguments over the scope of the FCCPC’s regulatory powers within Nigeria’s digital economy and telecommunications sector.

‎Although the litigants were absent in court, the Plaintiff, WASPAN, was represented by a team of lawyers led by Mr Kemi Pinheiro SAN, while the FCCPC’s lead counsel was Ms Olufunke Aboyade SAN.

‎At the commencement of proceedings, counsel informed the court that issues surrounding earlier contempt proceedings had been amicably resolved between the parties.‎

‎Following the development, Mr Pinheiro withdrew the Form 49 contempt process previously initiated by the Plaintiff, prompting the court to strike out the application.

‎The hearing thereafter shifted to the FCCPC’s preliminary objection challenging the competence of the suit.

‎‎Arguing the objection, Ms Aboyade contended that the DEON Regulations had existed since July 2025 and questioned the delay in instituting the action.‎

‎She further argued that the regulations were introduced as consumer-protection measures and maintained that the Plaintiff failed to comply with mandatory statutory pre-action notice requirements before approaching the court.

‎But, Mr Pinheiro urged the court to dismiss the objection, arguing that the FCCPC improperly introduced disputed facts without supporting affidavit evidence.‎

‎According to him, issues such as delay and alleged non-compliance with procedural requirements could not validly be raised through written submissions alone.

‎The senior advocate further argued that constitutional provisions guaranteeing access to court override technical objections relating to pre-action notices where a litigant alleges imminent regulatory injury.

‎He also accused the FCCPC of adopting inconsistent legal positions by simultaneously challenging the jurisdiction of the court while seeking affirmative reliefs from the same court.

‎On the substantive suit, WASPAN urged the court to invalidate portions of the DEON Regulations on the grounds that the FCCPC exceeded its statutory powers.

‎The Plaintiff argued that while the FCCPC possesses powers to make regulations under its establishing law, those powers are restricted to consumer protection matters and cannot supersede sector-specific legislation regulating telecommunications and financial services.

‎Mr Pinheiro specifically argued that the Commission was unlawfully attempting to exercise powers already vested in the Nigerian Communications Commission (NCC) and the Central Bank of Nigeria (CBN).

‎He further submitted that subsidiary legislation cannot override existing Acts of the National Assembly, insisting that the disputed regulations conflict with provisions of both the Nigerian Communications Act and the Central Bank of Nigeria Act.

‎In response, the FCCPC defended the validity of the regulations and insisted that its statutory mandate extends across sectors where consumer rights and market competition issues arise.

‎Ms Aboyade also argued that defendants in originating summons proceedings are entitled to formulate and argue independent legal issues in response to claims brought before the court.

‎During the final exchanges, the Plaintiff additionally challenged documentary exhibits tendered by the FCCPC, arguing that the materials lacked evidential value and failed to establish any direct connection between alleged “loan shark” activities and members of WASPAN.

‎After listening to all submissions, Justice Allagoa adjourned the matter till July 20 for judgment.

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