CBN lifts FX ban on UBA but other banks remain suspended

The Central Bank of Nigeria (CBN) has deleted the United Bank for Africa (UBA) from the list of nine deposit money banks (DMBs) banned from the foreign exchange market, for hiding over $2 billion belonging to Nigerian National Petroleum Corporation (NNPC) from the Treasury Single Account (TSA).

‘Tokunbo Martins, director, banking supervision of CBN, made the announcement on Wednesday night, saying: “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.”

Before the ban was reported on Tuesday, President Muhammadu Buhari had been briefed on the breach by the banks.

The banks were all mandated to move the monies to the  treasury single account.

At the full implementation of the TSA in 2015, the CBN had warned that banks that did not totally comply with the TSA remission plan risked possible fine and stringent punishment.

“The CBN may take action against any FXPD that fails to comply with the standards set forth in these Guidelines. Such action will vary depending upon the type of non-compliance, but may range, for instance, from fines, suspension from any or all FX operations for a period of time to termination as an FXPD,” it had said.

All the indicted banks are barred from the forex market until they fully refund the $2.1 billion held up in their coffers.