By Nse Anthony-Uko
The Central Bank of Nigeria (CBN) on Wednesday, lifted the ban placed on eight banks from participating in the interbank foreign exchange market.
Director of Banking Supervision, Mrs Tokunbo Martins, said that the defaulting banks have submitted a repayment plan which the apex bank finds acceptable.
According to her, the decision was taken after a meeting between the CBN , body of bank MDs and the Chartered Institute of Bankers of Nigeria (CIBN).
Nine banks were initially suspended from participating in the FX market by the CBN last Tuesday for failing to return $2.334 billion belonging to the NNPC/NLNG to the TSA, despite the federal government’s directive since August last year that all government deposits must be remitted to the account by September 15, 2015.
The eight banks – First Bank of Nigeria (FirstBank) Limited, Diamond Bank Plc, Sterling Bank Plc, Skye Bank Plc, Fidelity Bank Plc, Keystone Bank Limited, First City Monument Bank (FCMB) Limited, and Heritage Bank Limited – were yet to remit a total of $1.804 billion NNPC/NLNG funds to the TSA as at Friday.
United Bank for Africa (UBA) Plc, which complied last week by refunding $530 million to the TSA, has since been re-admitted into the FX market.
However, following the plea by the eight banks that remain barred from participating in the FX market, the CBN met with all bank CEOs on Wednesday and decided to consider the plea to give the affected banks more time to refund the the money.