CBN reinstates banned banks to forex market

The Central Bank of Nigeria (CBN) has re-admitted the remaining eight banks banned from foreign exchange market dealings.

The banks had been sanctioned over non-remittance of government’s $2.3 billion to the Treasury Single Account (TSA).

The reversal comes barely two weeks after the regulatory authority took action against the financial institutions.

CBN’s Director of Banking Supervision, Mrs. Tokunbo Martins, who affirmed the development, said the Body of Bank CEOs, under the auspices of Chartered Institute of Bankers of Nigeria (CIBN), met with the Committee of Governors of the CBN.

At the meeting, according to a statement from the apex bank, the banks presented a payment plan for all outstanding dollar deposits from the Nigerian National Petroleum Corporation/Nigerian Liquefied Natural Gas in their possession to the TSA.

The President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, said the Body of Bank CEOs, in partnership with the CIBN, decided to seek resolution in the interest of the Nigerian economy.

The Managing Director of Access Bank Plc, who is also chairman of the Body, Herbert Wigwe, disclosed they met with the CBN officials to resolve the issue.

In the heat of CBN’s action against the erring banks, except UBA, non of those listed denied being in possession of the funds, but only alleged that others that had the remittances were not sanctioned.

They also said the repayment plans had always been complied with, even before kick off of the TSA and had been ongoing before the CBN placed the ban.