Sunday, November 24

Breaking- CBN re-admits United Bank for Africa (UBA) into FOREX Market

Barely 48hours of announcing the removal of nine banks from the FOREX Market, the central bank of Nigeria has said that it has readmitted the United Bank for

Africa back into the forex Market.

This was disclosed in a statement made available by the Director,  Banking Supervision,  Tokunbo Martins today in Abuja.

The re-admission is as a result of UBA remitting all outstanding NNPC/NLNG deposits in it’s possession to NNPC’S treasury Single Account (TSA), at the CBN.

The statement reads in full;

“Further to the directive of the Central Bank of Nigeria (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 re-admitted into the Foreign Exchange Market effective Thursday, August 25, 2016”

Recall, the Central Bank of Nigeria, (CBN), Tuesday 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 circular addressed to the Director, Banking and Payments System Department of the CBN, with FD/LP2015/C/ADC/20/1/ /DF as reference number, was dated September 14, 2015. It was signed by M. K. Dikwa for the Accountant-General of the Federation, Federal Ministry of Finance, Funds Department, Abuja.

The banks, which suspension would remain in force until they remit all the funds to the TSA, are United Bank for Africa (UBA) ($530m); FirstBank of Nigeria (FBN) ($469m); Diamond Bank Plc ($287m); Sterling Bank Plc ($269m); Skye Bank Plc ($221m); Fidelity Bank ($209m); Keystone Bank ($139m); FCMB ($125m) and Heritage Bank ($85m).

The CBN officials said further disciplinary actions awaited the erring banks after remitting the funds in full to the government’s coffers.

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