Nigeria: Central Bank excludes 9 banks from forex market

Aug 25, 2016

The banks were barred for concealing $2.12 billion belonging to the NNPC.

Nine banks have been barred from dealing in foreign exchange transactions by the Central Bank of Nigeria (CBN), after it emerged that they concealed $2.12 billion belonging to the Nigerian National Petroleum Corporation (NNPC), and failed to remit the funds into the Treasury Single Account (TSA).

The banks are United Bank for Africa, FirstBank of Nigeria, Diamond Bank, Sterling Bank, Skye Bank, Fidelity Bank, Keystone Bank, FCMB and Heritage Bank.

The TSA was established by the Nigerian government in 2012 to consolidate all inflows from the country's ministries, departments and agencies (MDAs) by way of deposit into commercial banks, traceable into a single account at the CBN.

A September 15, 2015 deadline was set by the government for all MDAs with commercial banks to be closed and remitted to the TSA.

Speaking to Vanguard, some of the banks' officials said the understanding was that the NNPC was exempted from the TSA. The CBN said the nine banks face further disciplinary actions.ADNFCR-2976-ID-801824170-ADNFCR