Eight Banks Readmitted into FX Market – Thisday

CBN

Following the plea by the Body of Banks chief executives and other sectoral groups, the Central Bank of Nigeria (CBN) wednesday lifted its suspension of eight banks from participating in the foreign exchange market.

The eight banks were suspended after failing to return a total of $1.8 billion Nigerian National Petroleum Corporation (NNPC)/Nigerian Liquefied Natural Gas (NLNG) Company dollar deposits to the Treasury Single Account (TSA) as directed by the federal government.

The banks affected by the sanction are First Bank of Nigeria, Diamond Bank Plc, First City Monument Bank, Fidelity Bank Plc, Keystone Bank, Skye Bank Plc, Sterling Bank Plc and Heritage Bank.

The United Bank for Africa (UBA) Plc was also suspended alongside the eight banks from the FX market last week Tuesday, but was able to refund NNPC/NLNG funds in its custody. UBA was subsequently readmitted into the market by CBN two days after it returned the funds.

CBN’s Director of Banking Supervision, Mrs. Tokunbo Martins, who announced the readmission of the eight yesterday, after a meeting with the Body of Banks CEOs at the Chartered Institute of Bankers of Nigeria’s (CIBN) office in Abuja, said the defaulting banks had submitted a credible repayment plan to warrant lifting of the suspension.
“We just held a meeting with the Body of the Bank CEOs at the Chartered Institute of Bankers of Nigeria. To my right is the President of the Charted Institute of Bankers, to my far left is the Registrar and the Managing Director of Access Bank.

“You will recall that a while ago, a number of banks where suspended from the foreign exchange market and all of you guys went to town reporting all sorts of stories and all that. And since then, I have received some inquires; some of you have sent me text messages asking what is going on.

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