Nigeria’s CBN Issues Stern Directive To Banks On FX Requests

 

Nigeria’s apex bank, the Central Bnak of Nigeria has directed all Deposit Money Banks to ensure that no legitimate FX request from customers is turned down.

This directive was contained in a memo sent to all DMBs by the bank and signed by its Director, Banking Supervision Department, Haruna Mustafa on Wednesday.

According to the apex bank legitimate requests backed by supporting documents such as Personal Travel Allowance, (PTA), Business Travel Allowance (BTA), tuition fees, medical payments, SMEs transactions, must be honoured.

According to CBN, undue delays, rationing and/or diversion of FX is strongly discouraged while DMBs are required to forthwith establish electronic application and alert systems to update customers on the status of their FX requests.

The memo partly read, “DMBs are strongly advised to ensure that no customer is turned back or refused FX provided that documentation and all other requirements are satisfied. Equally, undue delays, rationing and/or diversion of FX is strongly discouraged whilst DMBs are required to establish electronic application and alert systems to update customers on status of their FX requests.

As communicated during the briefing, a toll-free line has been set up at the CBN for bank customers to escalate unresolved complaints related to their FX requests.

The CBN will continue to closely monitor banks’ conduct and compliance with this directive in order to ensure an efficient FX market for all legitimate users.”