In response to the recent plummet of the naira to over ₦950/$ in the parallel market, coupled with an exacerbating scarcity of foreign exchange, the Central Bank of Nigeria (CBN) has issued a stern warning to commercial banks involved in the unlawful trading of foreign exchange.
Allegations have arisen that certain banks are diverting foreign exchange away from legitimate channels and funneling them into the unofficial foreign exchange market.
The acting CBN governor, Folashodun Shonubi, delivered these crucial remarks during a lecture entitled “Diaspora Remittances and Nigerian Economic Development” in Abuja. Shonubi highlighted the urgency of enforcing stringent measures to combat illicit remittances, ensuring that funds are directed through proper avenues to bolster economic growth.
“We will not hesitate to expose and condemn the commercial banks engaged in such illicit practices,” Shonubi declared unequivocally.
Moreover, Shonubi highlighted the shortcomings of the existing remittance system. He pointed out that the cost of transferring money from the diaspora to Sub-Saharan Africa stands at approximately 9 percent of every $100, a figure he deemed excessively high and unparalleled globally.
Despite the challenges posed by informal channels, Nigeria has still managed to attract a substantial amount of remittances, with a staggering $16.7 billion influx. However, a significant portion of these funds bypasses the official foreign exchange market.
“We are vigorously striving to incentivise individuals to route their funds through formal channels, steering clear of the convoluted informal avenues,” Shonubi stressed.
