CBN Reinstates Banks Banned from Forex Market

The Central Bank of Nigeria (CBN) has reinstated all the banks that were banned from the foreign exchange market, Mrs Tokunbo Martins, director, Banking Supervision, has said.

She said this on Wednesday in Abuja at a media briefing, stating that the decision was reached after a series of meetings with the body of bank Chief Executive Officers (CEOs) and the Chartered Institute of Bankers of Nigeria (CIBN).

“Well, we have had engagements with the body of CEOs and they have been interacting amongst themselves and I am happy to tell you today that the banks that were hitherto banned have been released from the ban.

“And the reason is because all of the banks after discussions and engagements under the auspices of the body of CEOs and the CIBN have all submitted credible repayment plans which we the CBN found acceptable. “So as a result of that, all those banks have been re-instated in the foreign exchange market.’’

Prof. Segun Ajibola, CIBN president, said that the institute was very much interested in what was happening among all the industry players.

He added that under the aegis of the institute, the body of bank CEOs was now a formidable platform to look at issues that were pertinent to the industry and the economy, to ensure that stakeholders’ interest was protected.

 “We will protect the interests of all our stakeholders and especially the bigger picture, which is Nigeria and its economy as a whole. “So it is a happy development and I believe this will further help to strengthen our system and our economy.’’

Mr Herbert Wigwe, managing director of Access Bank, said that the body of bank CEOs under the auspices of the CIBN, aims to get banks to work together.

He said that this would ensure that anytime there was a serious issue in the market, bank CEOs could meet to look for a way to resolve them.

The CBN had on Tuesday banned nine Deposit Money Banks (DMBs) from the nation’s foreign exchange market for failing to remit the sum of 2.3 billion dollars belonging to NNPC to the Treasury Single Account (TSA).

The CBN then on Thursday re-admitted the United Bank for Africa (UBA) Plc, saying it had remitted all outstanding NNPC/NLNG deposits in its possession to NNPC’s TSA at the CBN.