Mercury Bank has announced that it will no longer provide banking services to Nigeria, adding the country to its list of prohibited nations. This decision places Nigeria alongside countries like Afghanistan, Iraq, Somalia, South Sudan, Ukraine, Liberia, Syria, and 30 others on the ban list.
Mercury Bank, a prominent U.S.-based financial institution known for its technology-driven banking solutions, confirmed this update on its website. The company stated that while it supports U.S. businesses founded by people worldwide, it cannot currently open accounts for founders residing in prohibited countries and regions.
As a result, businesses and individuals in Nigeria will no longer be able to open new accounts or conduct transactions through Mercury Bank. This change is expected to significantly impact many Nigerian entrepreneurs and startups that have relied on the bank’s services for their financial operations.
Seye Bandele, CEO of PaidHR, a Nigerian HRTech startup, highlighted Mercury Bank’s importance to Nigerian founders. He explained that the bank simplifies the process for Nigerian startups to conduct business in the U.S. by providing banking services for Delaware C corporations, which are often required for investment purposes. Mercury facilitated this by allowing founders to use a registered agent to set up their companies and bank accounts in the U.S.
Bandele also noted that Mercury Bank has been subject to numerous regulatory and compliance checks by U.S. authorities, which may have influenced this policy change.
John Opeyemi, a Mercury Bank customer, expressed his displeasure on social media, sharing that the bank had recently requested documents from him, only to close his account shortly after. The notice from Mercury Bank cited changes in determining account eligibility as the reason for the closure, effective August 22, 2024.
Other customers have also taken to social media to share their thoughts and concerns about the decision.
