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CBN Queries Banks for Inaccurate Forex Data

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  • CBN Queries Banks for Supplying Inaccurate Forex Data

The Central Bank of Nigeria on Sunday said it had issued queries to some Deposit Money Banks that provided inaccurate information on foreign exchange to end users.

The apex bank said this in a statement issued by its Acting Director, Corporate Communications Department, Mr. Isaac Okoroafor.

The statement did not provide the identities of the banks nor their number, but added that some of the affected banks had sent in their responses.

It said since the introduction of the new forex policy last year, the CBN had mandated all participating banks to forward evidences of forex sales to end users as well as advertise same in national dailies.

The decision to ask the banks to publish their forex rate, according to the apex bank, is to ensure transparency as the CBN neither allocates foreign exchange nor does it deal directly with bank customers.

However, the central bank lamented that it had observed that some banks forwarded inaccurate data, which were erroneously published, adding that this had given a wrong impression of disparate foreign exchange rates.

It said, “In line with our principle of transparency, we directed the DMBs to forward to us evidence of forex sale to end users and to advertise same in national dailies.

“Since the introduction of the new forex policy in 2016, we have published monthly the evidence of sale from the DMBs as received from the banks and without any alteration by us in the spirit of transparency.

“We have recently observed, however, that some of the DMBs forwarded inaccurate data, which were erroneously published and gave a wrong impression of disparate rates. The DMBs involved in providing inaccurate data have since been issued queries accordingly.

“Some have returned a response indicating that some of the figures were related to formatting errors, which do not affect the true rates of the affected transactions.”

The CBN stressed that as the constitutionally authorised industry regulator mandated to manage the forex market, maintain external reserves and safeguard the international value of the legal tender, it would not indulge in acts capable of discrediting the forex market.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Banking Sector

Ecobank Nigeria Received N50 billion 10-Year Bilateral Subordinated Loan

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ecobank

Ecobank Nigeria Received N50 billion 10-Year Bilateral Subordinated Loan

Ecobank Nigeria announced it has received N50 billion 10-year subordinated Loan.

Adenike Laoye, Group Head, Corporate Communications, Ecobank Nigeria, disclosed this in a statement released through the Nigerian Stock Exchange.

The statement read in part, “The bilateral funding provides stable medium-term liquidity to the balance sheet of Ecobank Nigeria and positively improved its balance sheet ratios, especially the capital adequacy ratio by circa 300 basis points.

The transaction proceeds would be deployed to support Micro, Small and Medium Scale Enterprises (“MSMEs”) and Small Corporates.

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Finance

Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move

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WAPIC

Niger Insurance to Sell Property Worth N15bn in Recapitalisation Move

Niger Insurance Plc said it is working on a plan to sell off N15 billion worth of real estate and investment property to boost its cash flow and meet the liquidity requirements of the insurance industry.

Mr. Edwin Egbiti, the Managing Director of the company disclosed this during the company’s 2019 annual general meetings held virtually in Lagos recently.

He said, “Subsequent to the requisite approvals of the board on behalf of shareholders, a number of the company’s real estate and investment property valued at N15bn have been put on sale in order to improve liquidity/cash flows, ensure reserve adequacy and improve solvency margins.

“We are encouraged by the progress made so far, and confident that both capital restructuring and recapitalisation efforts will be successful in line with National Insurance Commission’s regulatory timelines.”

It added that Niger Insurance recognised that its people were the company’s most critical assets without whom its goals and plans would remain elusive.

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Finance

AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt

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AMCON

AMCON Takes Over Inducon Nigeria’s Assets Over N1.3 Billion Debt

The Asset Management Corporation of Nigeria has taken over the assets of Dr. John Abebe, the Chief Promoter of Inducon Nigeria Limited over N1.3 billion debt.

According to a statement signed by the Head, Corporate Communications Department, AMCON, Jude Nwauzor, and titled ‘N1.3bn debt: AMCON takes over assets of Inducon Nigeria Limited’ the decision followed the order of Honourable Justice Aikawa of the Federal High Court, Lagos.

In compliance with the enforcement order, AMCON at the weekend took effective possession of the property situate at Plot12, Block 108, Lekki Peninsula Residential Scheme, Lagos, through its debt recovery agent – Ogunsola Shonibare L.P.

“The court also ordered that the bank accounts of the company and its directors, Dr. John Abebe, Mr Olawole Fatimilehin and Ademola Buraimoh, be frozen pending the final determination of the suit.

The asset management corporation said the case of Dr. John Abebe and Inducon Nigeria Limited started shortly after the loan was procured by AMCON in 2011 during the first phase of Eligible Bank Asset purchases from the defunct FinBank, Now FCMB.

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