ABUJA, Nigeria – The Central Bank of Nigeria, CBN, has taken a definitive stance against commercial banks involved in illicit foreign exchange sales, with a stern warning of punitive measures against such institutions.
During a lecture in Abuja on Sunday, August 13, 2023, titled “Diaspora Remittances and Nigerian Economic Development”, the acting Governor of CBN, Folashodun Shonubi, highlighted the gravity of the situation and pointed out the significance of channelling remittances appropriately to spur economic development.
As a proactive measure, he revealed the establishment of a commission that will conduct surprise checks on banks suspected of engaging in unauthorized dollar sales.
In a bid to uphold transparency and integrity within the banking sector, Shonubi stated, “We need to name and shame commercial banks involved in such malpractices.”
Discussing the challenges of the current remittance system, the acting governor elaborated that transferring money to Sub-Saharan Africa from overseas costs approximately 8-9% for every $100 – a rate considered the highest globally.
Notably, Nigeria’s remittance receipt stood at a substantial $16.7 billion, though a significant portion of this influx evades the regulated market.
Shonubi stressed the CBN’s commitment to steering individuals toward formal financial avenues instead of shadowy, unregulated channels.
Reflecting on a past strategy to incentivize the public, where a N5 refund was offered to engage in formal transactions, he noted its ineffectiveness leading to its discontinuation.
Nevertheless, Shonubi acknowledged that the right incentives could be instrumental in luring individuals to legitimate platforms.
In line with the commitment to streamline and bring clarity to the forex market, he mentioned, “We will rename the foreign exchange market, known as the I & E market, to the Nigerian Foreign Exchange Market, as it is the sole market we acknowledge.”
Ayodele Adeleke, the Commandant of the National Institute of Security Studies, highlighted the lecture’s significance in broadening the nation’s perspective on critical security matters.
He asserted that such educational series are instrumental in enhancing the institute’s curriculum, providing direction and emphasis to its 10-month course.
