OPay Faces Growing Legal, Fraud Allegations Amid Rising Customer Complaints and Regulatory Scrutiny

OPay Faces Growing Legal, Fraud Allegations Amid Rising Customer Complaints and Regulatory Scrutiny

Lagos, Nigeria – August 3, 2025

Popular Nigerian fintech platform OPay is facing mounting legal and reputational challenges following a string of fraud-related incidents, customer disputes, and regulatory concerns that have emerged between January and July 2025.

Despite claims of robust financial security and compliance protocols, the platform has been at the centre of multiple controversies, with allegations ranging from unauthorised transactions and court disobedience to concerns about its vulnerability to criminal exploitation.

₦95 Million Fraud Case: OPay Director Accused of Contempt

At the forefront of the controversies is an ongoing ₦95 million fraud case involving a director of OPay Digital Services Limited, Mr. Wuritka Dauda. The company’s legal counsel, Prince Bayo Omotubora, recently filed a contempt charge, seeking an order to commit Dauda to prison for allegedly ignoring a November 2024 court order.

The case has sparked concerns about corporate accountability within OPay’s leadership and the platform's responsiveness to legal directives.

Terrorism Financing Concerns: Industry Scrutiny Widens

In a broader national context, the Nigeria Sanctions Committee (NSC) in July 2025 designated Simon Ekpa, 14 other individuals, and two entities for allegedly financing terrorism. Though OPay was not directly named, the situation has triggered fresh calls for tighter Know Your Customer (KYC) protocols and enhanced transaction monitoring across all fintech platforms, including OPay.

Regulatory experts warn that fintech companies could become conduits for illicit financing if gaps in due diligence are not urgently addressed.

Court Orders OPay to Unfreeze Account, Pay Damages Over ₦3 Million Mosque Donation

In July, OPay came under fire after it blocked the account of Muhammed Jamiu Abass, who had received a ₦3 million donation from Saudi Arabia for the construction of a mosque in Nigeria. Despite several attempts to comply with documentation requests, OPay reportedly rejected his submissions.

Abass, through his brother, filed a lawsuit at the Osun State High Court, where Justice F.A. Sodamade ruled in December 2024 that OPay had violated Abass’ fundamental rights. The court ordered the company to unfreeze the account and pay ₦500,000 in damages. Notably, OPay failed to appear in court despite multiple service notifications.

Businessman Seeks ₦30 Million Over Alleged Unauthorised Deduction

In another legal twist, businessman Suleiman Mohammed Dikwa sued OPay at the Jos High Court over an alleged unauthorised deduction of ₦28,592.92 from his account. Dikwa claims the funds were withdrawn in connection with a Kaduna Sharia Court order, of which he was not properly notified.

Through his counsel, F.M. Pukuma, Dikwa is demanding ₦30 million in damages, arguing that the deduction was unlawful and infringed upon his consumer rights.

Mounting Pressure for Regulatory Reform

The string of controversies has reignited calls for comprehensive reforms in Nigeria’s digital finance sector. Analysts, digital rights advocates, and consumer protection groups are urging the Central Bank of Nigeria (CBN), Nigerian Financial Intelligence Unit (NFIU), and other regulators to enforce stricter oversight of fintech firms like OPay.

“Cases like these reflect systemic gaps in user protection and dispute resolution within Nigeria’s rapidly expanding digital finance landscape,” said one industry observer.

As fintech adoption continues to grow, stakeholders say restoring public trust will require more transparency, improved customer service mechanisms, and legal accountability from digital banking platforms.

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