Barred Banks React To CBN Action

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Last September, an order was given by President Muhammad Buhari that all Deposit Money Banks (DMBs) remit all funds belonging to the Federal Government to the Treasury Single Account (TSA).

However, nine banks were barred on Tuesday by the Central Bank of Nigeria (CBN) for failing to remit money belonging to the Nigerian National Petroleum Corporation (NNPC) to the Treasury Single Account (TSA).

Some of the affected banks have however been expressing their stance in statements and e-mails to customers in Lagos.

UBA

United Bank of Africa (UBA) released a statement almost immediately after the news of the CBN action broke out on Tuesday. Claiming that the bank was not among those sanctioned by CBN.

Our attention has been drawn to report of the ban of UBA from the foreign exchange market by the CBN over the non-remittance of the NNPC/NLNG dollar deposits.

“We wish to state very categorically that UBA has completely remitted all the NNPC/NLNG dollar deposits. We thank all our numerous customers, business partners and other stakeholders who have reached out to us on account of this report.

– Mr.Charles Aigbe, Head of Corporate Communications, UBA.

 

FirstBank

First Bank of Nigeria on Wednesday said in a statement that the referenced NNPC dollar accounts were fully disclosed to the CBN.

It said the accounts were being operated in line with the regulatory requirements.

The bank also said that tripartite documented discussions had been ongoing between the CBN, NNPC and the bank on the need for domestic retention of those balances.

It said it was part of measures to ameliorate challenges posed by the lack of foreign exchange availability, and customers’ inability to source foreign exchange to fund their trade finance obligations to the bank.

The bank reassured all its stakeholders that the issue was not a function of concealment or wilful non-compliance by the bank.

We are confident in our ability to meet and honour all our obligations as at when due and are currently in talks with the CBN and other relevant bodies and are positive of an amicable resolution soonest.”

-First Bank

 

Fidelity Bank

Fidelity Bank also said on Wednesday that it had repaid over 288 million dollars of those funds in line with the advised repayment schedule.

We will like to clarify that these deposits were duly reported to the CBN by Fidelity Bank in line with the extant TSA requirements contrary to the erroneous view in certain media reports that the funds were concealed from the regulators.

“At the commencement of the Treasury Single Account (TSA) in 2015, Fidelity bank advised NNPC and the regulators with a schedule of repayment for the NNPC/NLNG dividend dollar deposits.

“Please note that you can continue to operate your domiciliary account with Fidelity and this development will not affect your deposits/loans (local and foreign currency), remittances, transactional services and electronic banking services.

“Although the market condition remains quite challenging, we will continue to honour our obligations and operate with the highest level of corporate governance.’’

-Fidelity Bank

The bank also said in the interim that it was engaging with the other eight banks involved, stakeholders and the regulators to resolve the issue quickly and ensure its return to the foreign exchange market.

 

Keystone Bank

Keystone Bank on Wednesday in a statement signed by its management, said it had engaged in efforts that were geared towards a very timely resolution.

It said that the bank understood the importance of sourcing foreign exchange for its customers’ needs to support economic growth.

The bank said the development did not adversely affect customers’ existing transactions with it except that there would be constraints in establishing new letters of credit until the issue was resolved.

 

Heritage Bank

Heritage Bank on Wednesday said that the CBN’s announcement of temporary suspension was a systemic challenge to the banking industry that cut across most banks.

It said the bank would continue to treat forex transfer, remittance from domiciliary accounts, establishment of non-valid for foreign exchange form, and establishment of Letter of Credit (LoC) on the bank’s offshore lines.

 

SEE ALSO: FG’s Budget Cuts Affects CBN’s 2016 Budget

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