Nigerian Fintech Gigbanc to Shut Down, Urges Customers to Withdraw Funds Before July 31

Nigerian financial technology startup Gigbanc has announced plans to cease operations after three years in business, citing mounting financial pressures and difficulties in securing fresh investment.

The company said the decision follows a prolonged struggle with rising operating costs, increased regulatory compliance expenses, and limited access to new funding needed to sustain its operations.

According to Gigbanc's Chief Executive Officer, Yemi Okundaye, the company explored several options, including restructuring its business model. However, efforts to attract additional investors were unsuccessful, making an acquisition the most practical solution.

"Pursuing an acquisition became the most practical path forward," Okundaye said.

Customers Asked to Withdraw Their Money

Gigbanc has advised all customers to convert any foreign currency balances into Nigerian naira and transfer their funds to local bank accounts before July 31, 2026.

The fintech company assured users that withdrawals completed before the deadline will not attract transfer charges, encouraging customers to act promptly to avoid disruptions.

Why Gigbanc Is Closing

The company attributed its shutdown to several challenges affecting many fintech firms, including:

Rising regulatory compliance costs, including Know Your Customer (KYC) requirements.

Increasing technology and infrastructure expenses.

Difficulty raising new investment capital.

Higher operational costs in a competitive fintech market.

Part of a Wider Trend

Gigbanc's closure comes amid growing challenges in Nigeria's fintech industry. Earlier this year, digital lending company Lidya also exited the Nigerian market after years of operation, highlighting the funding and market pressures facing technology startups.

Industry analysts believe these developments underscore the importance of sustainable business models, stronger revenue generation, and improved access to long-term financing for African fintech companies.

Although Gigbanc is preparing to wind down operations, discussions regarding a possible acquisition are ongoing. If successful, some of the company's technology and services could continue under a new owner.