The Central Bank of Nigeria (CBN) has threatened to sanction banks caught engaging in illegal forex sales.
The Publisher reports that the acting Chairman of the apex bank, Folashodun Shonubi disclosed that plans are underway to form a commission to handle such issues.
He said the commission, when formed, will be in charge of paying unscheduled visits to inspect banks who are accused of unlawfully selling dollars, noting that any bank caught will be punished.
The CBN boss spoke during a lecture titled: “Diaspora Remittances and Nigerian Economic Development” in Abuja.
He said, “We need to name and shame commercial banks involved in such malpractice.”
Speaking further, Shonubi remarked that there is an urgent need to take measures to restrict illegal remittances of forex and channel them via appropriate means to maximise economic growth.
He said Nigeria received about $16.7 billion in remittances, but most money was outside the legal market.
The acting CBN boss, who blamed the present remittance system, submitted that Nigeria has the highest cost of transferring money from the diaspora compared to other nations in Sub-Saharan Africa reason, citing that 8–9 per cent of every $100 is too much.
Shinobi highlighted the importance of using incentives to drive individuals into formal market transactions; however, the adoption of N5 refunds as incentives didn’t work out well.
He stated that “We are working hard to encourage individuals to bring money into the formal sector rather than relying on informal channels, which have become difficult to manage,
“We will rename the foreign exchange market, known as the I & E market, to the Nigerian Foreign Exchange Market, as it is the sole market we acknowledge.”