On Wednesday night, the Central Bank of Nigeria (CBN) announced on its website that it was readmitting the United Bank for Africa (UBA) into the forex market after the bank remitted all outstanding NNPC/NLNG deposits in its possession into the Treasury Single Account (TSA). This news comes less than 24 hours after reports that the CBN had banned nine Nigerian banks, including UBA, from its forex transactions.
The statement, which was signed by Tokunbo Martins, the director of banking supervision reads:
“Further to the directive of the CBN to all Deposit Money Banks (DMBs) to return all outstanding unremitted NNPC/NLNG foreign currency, this is to confirm that the United Bank for Africa (UBA) Plc has remitted all outstanding NNPC/NLNG deposits in its possession to NNPC’s Treasury Single Account (TSA) at the CBN.”
“Accordingly, the United Bank for Africa (UBA) Plc has been readmitted into the Foreign Exchange Market effective Thursday, August 25, 2016.”
Reuters reported that Diran Olojo, a spokesperson for FCMB, one of the affected banks, said it was working with the Central Bank to resolve the issue, which was a function of illiquidity in the currency markets and the weak economy rather than wilful non-compliance.
Subsequently, after the removal of UBA from the list, the following banks remain barred from forex transactions until they fully remit the NNPC funds to the TSA:
- 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
- Heritage Bank-$85m
