Nigeria’s Central bank bars nine banks from

The funds, which the banks comprising of tier one and tier two lenders and deposit banks, failed to remit belongs to the nation’s oil corporation, the Nigerian National Petroleum Corporation (NNPC).

The Central Bank of Nigeria on Tuesday suspended nine banks from all foreign exchange transactions for failure to remit over $2 billion in various NNPC/NLNG accounts in their vaults to the Treasury Single Account as ordered by President Muhammadu Buhari a year ago.

It was also learned that President Muhammadu Buhari had been briefed on the matter before the sanctions being imposed on the defaulting banks were arrived at.

“We wish to state very categorically that UBA has completely remitted all NNPC/NLNG dollar deposits”.

The bank said that the development did not adversely affect customers’ existing transactions with it except that there would be constraints in establishing new letters of credit until the issue was resolved. The banks were supposed to pay the money into the government’s account at the central bank. The central bank governor has said recession is likely.

NNPC was investing this dividend payment in a dedicated account as fixed deposits with commercial banks.

One of the affected banks, First City Monument Bank, blames the “dire macroeconomic situation. rather than concealment or willful non-compliance”.

An official of FCMB who spoke on condition of anonymity, said: We are working with the Central Bank of Nigeria on an amicable resolution.

A Diamond Bank source said bank never concealed any funds.

The Nigerian currency exchanged at about N400 on Wednesday afternoon, from N397 it closed on Tuesday; while it traded against the Pound Sterling and the Euro at N515 and N450 respectively.