CBN suspends 9 banks from forex transactions

The Central Bank of Nigeria, CBN, yesterday, suspended nine banks from further dealing in foreign exchange transactions, until they remit all outstanding Nigerian National Petroleum Corporation, NNPC, funds in their vaults into the Treasury Single Account, TSA.

The nine banks were barred for concealing $2.12 billion belonging to the NNPC, and failed to remit the funds into the TSA as directed by the Federal Government.

The action of the apex bank, however, is seen in some quarters as contradicting an earlier circular on the issue exempting NNPC from TSA.

The commercial banks, whose suspension would remain in force until they remit all  funds to the TSA according according to the Central bank includes: United Bank for Africa (UBA) -$530m; First Bank of Nigeria (FBN)- $469m; Diamond Bank Plc-$287m; Sterling Bank Plc-$269m; Sky Bank Plc -$221m; Fidelity Bank -$209m; Keystone Bank- $139; First City Monument Bank (FCMB) -$125m; and Heritage Bank-$85m, totaling .
The CBN officials said further disciplinary actions awaited the erring banks after remitting the funds in full to the government’s coffers.

Vanguard gathered that CBN governor was in Lagos, yesterday, for meetings with banks’ Managing Directors to brief them on the development. It was further learned that at the meeting, issues were raised concerning some of the banks that were not listed but it was later learned that further investigations on their transactions were to be carried out.