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CBN reinstates 9 suspended banks

by Business News Report

The Central Bank of Nigeria ( CBN ) has reinstated the nine banks that were recently suspended from the foreign exchange market. They were suspended for failing to remit about$ 2.3 billion funds of the Nigerian National Petroleum Corporation (NNPC) to the Treasury Single Account (TSA) of the federal government.

The CBN Director of Banking Supervision, Mrs. Tokunbo Martins, who announced the reinstatement in Abuja , yesterday,  explained that the apex bank took the decision after the banks presented repayments plans.

According to her, the CBN and the Body of Banks Chief Executive Officers (CEOs) have met several times after the suspension if the nine banks, and eventually agreed to reinstate the affected banks after the CBN was satisfied with the banks’ repayment plans.

Mrs. Martins said, “We just a meeting with the body of the CEOs at the chartered institute of bankers. To my right the president of the charted institute of bankers, to my far left the register and the managing director of access bank.
“You will recall that a while ago, a number of banks were suspended from the foreign exchange market and all of you guys went to town reporting it all sorts of stories and all that. And since then I have received some inquires, some of you have sent me text messages asking what is going on.
“Well we had engagements with the body of CEOs and they have been interacting among themselves and I am Happy to tell you today the banks that were put under ban have been released from the ban. And the reason is because all of the banks after discussions and engagements under the auspices of the Body of CEOs at the CIBN have all submitted creditable Repayment Plans which we the central bank consider acceptable.
“So as a result of that all the affected banks have been reinstated in the foreign exchange market.”

Also speaking, the Managing Director of Access Bank, Mr. Herbert Wigwe said “The body of bank CEOs under the offices of the chartered institute of bankers serves to get banks to work together each time there is a serious issue in the market like  this, bank CEOs can meet to look for a way to resolve it, and just as Mrs. Martin said we had  meetings with the Central Bank in the past couple of days and the issue has largely been resolved.”

In his own remarks, the President of the Chartered Institute of Bankers of Nigeria (CIBN), Prof. Segun Ajibola, said that the organization had to intervene in the issue because the outcome would affect the entire industry.

He said, “The Chartered Institute of Bankers of Nigeria is very much interested in what is happening among all the players now. Because under the aegis of the body of bank CEOs to look at issues that concern the industry and the economy

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