Nigeria’s Forex market: CBN reinstates 9 suspended banks

*Central Bank of Nigeria.

*Central Bank of Nigeria.

02 September 2016, Abuja — The Central Bank of Nigeria, CBN, has reinstated the nine banks recently suspended from the foreign exchange market. They were suspended for allegedly failing to remit about $ 2.3 billion funds of the Nigerian National Petroleum Corporation, NNPC, to the Treasury Single Account, TSA, of the federal government.

The CBN Director of Banking Supervision, Mrs. Tokunbo Martins, who announced the reinstatement in Abuja, yesterday, explained that the apex bank took the decision after the banks presented repayments plans.According to her, the CBN and the Body of Banks Chief Executive Officers, CEOs, have met several times after the suspension of the nine banks, and eventually agreed to reinstate the affected banks after the CBN was satisfied with the banks’ repayment plans.

Mrs. Martins said: “You will recall that a while ago, a number of banks were suspended from the foreign exchange market and since then, I have received some inquiries, some of you have sent me text messages asking what is going on. “Well, we had engagements with the body of CEOs and they have been interacting among themselves and I am happy to tell you that the banks that were banned are being released from the ban.

“And the reason is that all the banks, after discussions and engagements under the auspices of the Body of CEOs at the Chartered Institute of Bankers, CIBN, submitted credible repayment plans which the CBN considered acceptable.

“So, as a result of that, all those banks have been reinstated in the foreign exchange market.” In his remarks, President of CIBN, Prof. Segun Ajibola, said the organization had to intervene in the issue because the outcome would affect the entire industry.

He said: “The Chartered Institute of Bankers of Nigeria is very much interested in what is happening among all the players now.”

*Emma Ujah & Rebecca Amos – Vanguard

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