Nigerian startup founders and tech industry stakeholders are reeling from a recent decision by Mercury Bank to close accounts linked to businesses located in the country, as well as more than 30 other nations across Africa, Asia and parts of Europe and the Middle East. The move, effective August 22, 2024, has sent shockwaves through the local tech ecosystem, leaving many scrambling for alternatives.
The San Francisco-based digital bank, a popular choice for African startups and more so since the demise of Silicon Valley Bank , cited recent changes in how we determine account eligibility as the reason for the closures. However, the decision comes amid heightened regulatory scrutiny of the fintech sector and Nigerias placement on the Financial Action Task Force (FATF) greylist.
They just sent startup founders from certain countries 30 days notice to move their money, lamented Oluyomi Ojo, co-founder of the on-demand printing platform Printivo. No explanations, no considerations.
This isnt the first time Mercury has faced backlash from Nigerian startups. In March 2022, the bank abruptly restricted several accounts without explanation, citing unusual activity. This move triggered widespread criticism and accusations of discrimination.
Mercury closed my accounts too even with founders living in the US, Sultan Akintunde, co-founder of AltSchool Africa and TalentQL, shared on X . Comparing Nigeria to Afghanistan is funny.
