A. What Happened?

Q: What did the Central Bank of Nigeria (CBN) announce on July 1, 2026?

A: The CBN issued a press statement revoking the operating licences of 46 microfinance banks (MFBs) across Nigeria, effective July 1, 2026. This action was taken under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020, and was approved by the CBN Governor, Mr. Olayemi Cardoso. The revocation applied to institutions that met one or more of the following conditions: insufficient assets to meet liabilities, closure of operations without CBN approval, inactivity and cessation of financial intermediation, failure to commence operations within 12 months of licence approval, or failure to maintain minimum capital funds unimpaired by losses.

Q: Is "Sycamore MFB" the same as the Sycamore app or product our customers use every day?

A: No. "Sycamore MFB" refers to a separate microfinance banking entity, based in Kano State, that Sycamore recently acquired as part of its planned expansion into deposit-taking and payments. It is a different entity from Sycamore's existing, live consumer lending platform and investment business, which customers currently use and which are unaffected by this revocation.

Q: Why was the Kano entity's licence revoked?

A: The CBN's press statement lists five possible grounds for revocation across the 46 affected institutions and does not attribute a specific reason to any single bank. Sycamore's published statement clarifies that the acquired entity was still in the process of being integrated into Sycamore's group and operational infrastructure when its licence was captured in the CBN's sector-wide compliance review.

Q: Did Sycamore lose its licence?

A: No. The revoked entity was recently acquired. Sycamore's core, customer-facing businesses were not named in the CBN's revocation list and continue to operate under their own current, valid licences.

B. Impact on Your Account and Funds

Q: Is my money safe?

A: Yes. Sycamore's statement confirms that all customer funds and investments are secure and fully accessible. The revoked entity in Kano had not yet been integrated fully into Sycamore's operational or customer-facing infrastructure, so it held no customer deposits or funds on behalf of Sycamore's existing user base.

Q: Can I still access my Sycamore account, savings, loans, or investments as normal?

A: Yes. Sycamore's existing operations remain fully active. The consumer lending platform continues to operate under its current FCCPC approval, and Sycamore Investment and Asset Management Limited (SIML) continues to operate under its current SEC licence. There is no change to how customers log in, transact, save, borrow, or invest.

Q: Will my transactions, withdrawals, or loan repayments be delayed because of this announcement?

A: No service disruption has been announced in connection with this matter. Customers should continue to expect normal service on all existing Sycamore products. Any planned maintenance or service issue unrelated to this announcement would be communicated separately through Sycamore's usual channels.

Q: Is Sycamore shutting down or exiting the Nigerian market?

A: No. This CBN action relates specifically to a newly acquired microfinance banking entity in Kano State, not to Sycamore's existing regulated businesses. Sycamore's core lending and investment operations, which the vast majority of customers interact with, are unaffected and continue to run under their respective FCCPC and SEC approvals.

C. About the Kano Acquisition

Q: What was the Kano entity, and why did Sycamore acquire it?

A: Sycamore acquired a licensed microfinance bank in Kano State as part of its planned expansion into deposit-taking and payments, a strategic path other Nigerian fintechs have also pursued in order to broaden their regulated product offering beyond lending and payments facilitation.

Q: What stage was the acquisition at when the licence was revoked?

A: The company was in the process of establishing the entity's integration into its group and operational infrastructure at the time the licence was captured in the CBN's sector-wide compliance review. In practical terms, this means the entity had not yet gone live as part of Sycamore's customer-facing operations.

Q: What happens to the Kano entity now that its licence has been revoked?

A: Sycamore has stated that it will provide further updates as things progress. At this stage, the immediate, confirmed facts are limited to what has been publicly communicated: the licence has been revoked effective July 1, 2026, and Sycamore's existing operations are unaffected. Any decisions regarding next steps for the Kano entity (e.g., regulatory engagement, appeal, restructuring) should only be communicated once formally confirmed.

Q: Does this affect Sycamore's broader plans to offer deposit-taking or full banking services?

A: This is a live, evolving matter, and any statement on revised timelines or strategy for deposit-taking ambitions will come from official company channels once confirmed internally. This FAQ will be updated as soon as that guidance is available.

D. Regulatory Standing of Sycamore's Core Products

Q: What licences does Sycamore currently hold?

A: Sycamore's existing, customer-facing operations are held under separate regulatory approvals from the revoked Kano entity:

• Consumer lending platform: operates under current FCCPC (Federal Competition and Consumer Protection Commission) approval.

• Sycamore Investment and Asset Management Limited (SIML): operates under a current SEC (Securities and Exchange Commission) licence.

Q: Who regulates Sycamore's lending products?

A: Sycamore's consumer lending platform is regulated by the FCCPC, and this approval is current and unaffected by the CBN's July 1, 2026 announcement.

Q: Who regulates Sycamore's investment products?

A: Investment products are offered through Sycamore Investment and Asset Management Limited (SIML), which holds a current SEC licence. This is unaffected by the CBN's announcement, which relates to the separately regulated Kano microfinance entity.

Q: Is Sycamore under any investigation from the CBN?

A: No investigation of Sycamore's core operations has been announced. The CBN's press statement addresses a sector-wide compliance review resulting in licence revocations for 46 microfinance banks; it does not name Sycamore's consumer lending or investment businesses.

E. What Happens Next?

Q: What is Sycamore doing in response to this announcement?

A: Sycamore has issued a public statement confirming the facts of the situation and reassuring customers that funds and investments remain secure and accessible. The company has committed to providing further updates as things progress.

Q: Will Sycamore provide further updates?

A: Yes. Sycamore has stated it will provide further updates as things progress. Customers and partners are encouraged to monitor official Sycamore channels (app notifications, official social media handles, and the company website) for the most current information.

Q: Where can I get the most accurate, up-to-date information?

A: The most reliable sources are Sycamore's official statement and official company channels(www.sycamore.ng). Customers are encouraged to disregard unverified claims circulating on social media and to rely on these official sources.

F. Trust, Verification & Support

Q: I saw this on social media or in the news, how do I know what to believe?

A: Fintech and financial services are trust-sensitive industries, and headlines can create alarm even where customer impact is minimal. We recommend relying only on Sycamore's official statement and the CBN's original press release rather than secondhand summaries, screenshots, or social media commentary, which may omit important context, such as the distinction between the newly acquired, pre-integration Kano entity and Sycamore's live, currently licensed operations.

Q: Who do I contact if I have further questions or concerns?

A: Customers should reach out through Sycamore's official in-app support, customer care line, or verified social media channels.