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  • Clearing the CBN’s Augean stable

    Clearing the CBN’s Augean stable

    • By Debo Adeniran

    Sir: Since the removal of the erstwhile governor of the Central Bank of Nigeria, CBN, Godwin Emefiele by President Bola Ahmed Tinubu, most Nigerians and critical players in the nation’s financial industry have renewed hope that the government under his watch is determined to see through economic reform policies to heal the country’s ailing economy and bring us out the present economic duodenum. It is trite to emphasise that the CBN is strategic to actualising virtually all the set reforms objectives of the government and the aspirations of the citizens for social reliefs from prevalent agonising economic pains, anguish, sufferings, and hardships the country is currently experiencing.

    This task of cleansing the CBN’s Augean stable is, however, extremely onerous especially when we consider revelations of illicit transactions, compromising sleaze, financial recklessness, and rudderless management in close to a decade reign of ex – Governor, Emefiele. This is why President Tinubu set up a Special Investigation Panel led by Jim Obazee to conduct a forensic audit of the account of the apex bank during the tenure of the former helmsman of the apex bank.

    There are reports of clandestine as well as overt schemes by CBN cabals to frustrate the investigations of the Obazee-led investigation panel. Preliminary reports filtering into the public domain, however, seem to show that there are lots of worms, maggots and poisonous vermis in the decadent cans of the CBN. Many top management officers of the bank have been fingered in the various financial malpractices during this period. The detention of the bank’s former Director of Finance, Benjamin Fakunle by the Department of State Security Services, DSS is pursuant to an alleged crafty attempt by Emefiele-led management to cover its tracks with a suspicious audit report. Obazee panel has fingered improprieties in the seven-year financial account audit of the bank which is alleged to have deviated from globally recognised, International Financial Reporting Standards, IFRS. Fakunle is also alleged to have paid a whooping N401 million for the spurious audit document in violation of the Financial Reporting Council of Nigeria regulations.

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    This is just perhaps a tip of the iceberg of financial crimes said to have been committed. Most of them, with diligent investigations and prosecution constitute grave economic sabotage crimes against the nation and her citizens.

    For us to comprehend the magnitude of the crimes committed by the CBN against the nation, we call into record the advisory of respected legal activist, Femi Falana, SAN to President Tinubu on empty federal treasury. Falana’s low hanging fruits treaty offered a 22 list of areas where the nation’s funds are cornered awaiting the federal government’s summoning of requisite to access same. Yet, President Buhari was busy borrowing to finance our annual national budget.

    If we just use the statistics of Mr. Falana alone, it is clear that the resources of our great country in the hands of individuals, corporate cabals and even some compromised global institutions is sufficient enough for the government to address the infrastructural deficits afflicting the country. An apex bank that is up and doing in discharging its statutory responsibilities and patriotic duties would not have presided over a national economy that is prostrate, broke and insolvent. Funds that could have provided for social needs like sound transportation system – smooth road network, basic healthcare service, qualitative education for citizens, portable water, affordable housing, employment and security of lives and properties.

    We unequivocally call on all anti-corruption agencies to beam their searchlights on the operations of the CBN and its principal management officials during this period to fully account for dereliction of their financial, fiduciary responsibilities to the country and citizens. We are confident that the funds outside our national coffers are sufficient to provide the necessary financial sinew to kick start Nigeria socio economic transformation and much vaunted technological-industrial advancement.

    •Debo Adeniran

    deboadeniran@gmail.com

  • Capital market stakeholders optimistic Cardoso’s CBN ‘ll engender balanced growth

    Capital market stakeholders optimistic Cardoso’s CBN ‘ll engender balanced growth

    Capital market stakeholders yesterday threw their weight behind the appointment of Dr. Olayemi Cardoso as the Governor of Central Bank of Nigeria (CBN) with a sense of optimism that Cardoso would engender a balanced policy environment.

    Capital market leaders and experts said Cardoso, a chartered stockbroker, banker and development consultant, possesses the balanced worldview to ensure the necessary congruence between fiscal and monetary policies in order to foster healthy growth of the economy.

    Chairman, Association of Securities Dealing Houses of Nigeria (ASHON), Mr Sam Onukwue, said Cardoso has the relevant cognate experience and professional training to make a difference at the apex bank.

    “He is a thorough-bred professional with relevant cognate industry experience. With him and the Minister of Finance and Coordinating Minister of Economy, we expect a healthy balance in the application of monetary and fiscal policies in the management of the nation’s economy,” Onukwue said.

    He, however, urged him to strive to maintain the independence of the apex bank without wavering for the bank to attain its goals during his tenure.

    Managing Director, Arthur Steven Asset Management Limited, said the appointment of the new leadership at the apex bank was critical to the revival of the economy since both fiscal and monetary policies are needed to combat the worsening macroeconomic situation.

    He described the appointment as timely and qualitative, noting that the quality of the new executives appear outstanding.

    “Cardoso, who is coming in as the new CBN Governor has cognate experience in all aspects of the financial sector as well as broad knowledge of economic management given his past record as a commissioner in Lagos State.

    “I am optimistic that he and the team will be able to craft and execute the needed policies that will rebuild confidence in the financial services sector and help to stabilise our economy,” Amolegbe, immediate past president of Chartered Institute of Stockbrokers (CIS) said.

    Managing Director, APT Securities and Funds, Mallam Kasimu Kurfi said the choice of a well-diversified professional to lead the apex bank would impact positively on the economy.

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    “It is a welcome development, especially for the capital market. For the first time, a Fellow Chartered Stockbroker is coming as CBN Governor. His broad worldview will ensure monetary policy did not work against the capital market. This is important in order to ensure smooth flow of foreign investments into the country,” Kurfi said.

    Managing Director, Highcap Securities, Mr. David Adonri, said the profiles of the new members of CBN Board of Governors showed that their appointments are well deserved.

    He said Cardoso and the Deputy Governors make a formidable team, urging them to continue from where the outgoing Acting Governor, Mr. Folashodun Shonubi stopped.

    “Within his short tenure, Shonubi ended the excruciating cash scarcity and implemented the new foreign exchange reform with decisive precision. The new team is also expected to reform CBN further by making it lean, to focus solely on monetary policy and divest itself of banking supervision, development finance, commercial banking and incursion into fiscal policy space,” Adonri said.

    Cardoso comes to his new job with a rich pedigree. A former chairman of Citibank Nigeria, he is distinguished leader in the financial and development sectors with over 30 years’ experience in the private, public and not-for-profit organisations.

    He has also sat on the boards of Nigerian subsidiaries of Texaco and Chevron and chaired the board of EFInA, a financial sector development organisation supported by the Bill and Melinda Gates foundation.

    He was in government as Commissioner for Economic Planning and Budget for Lagos State, where he championed the financial reform process which led to the state’s development of independent tax revenues.

    In his capacity as a consultant and policy expert, he advised and collaborated with major international development organisations including the World Bank, Ford Foundation, UN Habitat, World Health Organisation and the Swedish Development Foundation.

    He started his banking career with Citibank where he eventually rose to the position of Vice President leaving to co-found Citizens International Bank where he was an Executive Director for eight years.

    Cardoso studied managerial and administrative studies at the Aston University, where he obtained a Bachelor of Science (B.Sc.) degree. He is the recipient of several awards including an honorary Doctorate Degree in Business Administration from Aston University, his alma mater, and the Global Distinguished Alumni Award from Citi.

    Cardoso obtained a Masters in Public Administration from Harvard Kennedy School where he was a Mason Fellow.

  • Help Nigeria to come out of economic crisis, Abbas tells CBN governor-designate

    House of Representatives Speaker Tajudeen Abbas has urged the governor-designate of the Central Bank of Nigeria (CBN), Dr. Olayemi Cardoso, and four deputy governors of the apex bank to help the government navigate the country out of the current economic crises to prosperity.

    In a statement yesterday in Abuja by his Special Adviser on Media and Publicity, Musa Abdullahi Krishi, the Speaker also hailed the President for the calibre of persons he has appointed to manage the affairs of the CBN.

    Describing the appointees as square pegs in square holes in the financial and economic sectors, Abbas said the appointees have what it takes to reposition the apex bank. 

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    President Bola Ahmed Tinubu, on Friday, approved the nomination of Dr. Cardoso as the new governor of the CBN.

    The President also approved the nomination of Muhammad Sani Abdullahi Dattijo, Emem Nnan Usoro, Philip Ikeazor and Bala M. Bello.

    The Speaker noted that Cardoso, a financial expert and a banker of many years, would bring his experience to bear in his new role as the CBN governor.

    The Speaker lauded the choice of Dattijo, from Kaduna State, saying the nominee has been a good ambassador of the state.

    Dattijo, a former Commissioner for Planning and Budget under former Governor Nasir El-Rufai, was a policy adviser at the Executive Office of former United Nations Secretary General Ban Ki-Moon in New York. He later served as the Chief of Staff to El-Rufai during the latter’s second tenure as Kaduna State governor.

    Abbas said the appointees have a huge task ahead of them, as they are coming on board at a time Nigeria is experiencing economic challenges, especially the country’s monetary policy.

  • CBN probe: Emefiele’s driver, 19 apex bank officials quizzed

    CBN probe: Emefiele’s driver, 19 apex bank officials quizzed

    • Many NIRSAL, NSPMC, NIBSS executives undergo interrogation

    No fewer than 20 persons with links to the Central Bank of Nigeria (CBN) and its immediate past governor, Godwin Emefiele, have so far been questioned by the special investigators appointed by President Bola Tinubu to probe the apex bank, The Nation can now confirm.

    Among those interrogated were the four deputy governors of the apex bank, some directors and some drivers including Emefiele’s, sources said yesterday.

    According to one of the sources, the drivers were interviewed because “they were the ones who carried the big men around.”

    The sources added: “Many directors, especially the ones directly under the deputy governors, were interviewed.

    “They have also invited officials of the Nigeria Security Printing and Minting Company (NSPMC) and those in charge of all those intervention programmes were also invited.”

    Some officials of NIRSAL Microfinance Bank (NMFB), Nigeria Inter-Bank Settlement System Plc (NIBSS), were similarly summoned.

    Read Also: Tinubu names Cardoso CBN governor in major shake-up

    The special investigators paid a quiet visit to the Nigeria Incentive-Based Risk Sharing System for Agricultural Lending (NIRSAL Plc) on Friday in furtherance of their assignment.

    But no arrest was made on that occasion, it was gathered.

    Sources also said Shuaib Ahmed, the Executive Secretary of the Financial Reporting Council of Nigeria (FRC), and his deputy, Iheanyi Anyahara, were invited to appear before the panel in connection with the preparation of the CBN audited financial statements from 2016 to 2022.

    One source said: “Some of those summoned are detained till the following day if their interrogation takes longer than anticipated or if they need some documents from their office and they did not bring them along. They will be detained while they send for the documents.

    “Also if they are interrogating someone and he is being linked with someone else, the person is kept there till they invite the other person, and they will be interrogated separately.

    “We can’t put a number to those invited yet. Let’s just say close to 20 have been invited.

    The special investigator’s invitation may also be extended to retired directors.

    “Any director who has retired and has anything to do with the case will be invited. Even board members who have retired can be invited,” the source added.

    A parallel investigation of the CBN is being carried out by the Department of State Services (DSS) under the inter-agency committee.

    It was the inter-agency committee that detained deputy governors Aisha Ahmad and Kingsley Obiora.

    Continuing, the source said: “The DSS investigative team is different from Obaze’s team.

    “What I don’t understand is where they submit their own report. Or do they just want to keep it for their own (inter agency) information since it is not stated anywhere who ordered them to do that.

    “Everybody knows Obaze’s team gets its directives from the President.”

    President Tinubu, in a July 28, 2023 letter, appointed Obaze, the founding Executive Secretary of the FRC, to probe the activities of the apex bank and its related entities.

    He is looking into the books of the Nigerian National Petroleum Corporation Ltd (NNPCL), the Federal Inland Revenue Service (FIRS) and other government business entities, which the President, in the letter he personally signed, said was in continuation of government’s anti-corruption fight.

    The letter reads: “In accordance with the fundamental objectives set forth in section 15(5) of the constitution of the Federal Republic of Nigeria 1999 (as amended), this administration is, today, continuing the fight against corruption by appointing you as a Special Investigator, to investigate the CBN and related entities.

    “This appointment shall be with immediate effect and you are to report directly to my office.”

  • BREAKING: Tinubu appoints Cardoso as new CBN Governor

    BREAKING: Tinubu appoints Cardoso as new CBN Governor

    President Bola Tinubu has appointed Dr. Olayemi Michael Cardoso as the new Governor of the Central Bank of Nigeria (CBN). 

    The nomination is for a term of five years at the first instance, pending his confirmation by the Senate.

    A statement by his spokesman Chief Ajuri Ngelale explained the directive is in conformity with Section 8 (1) of the Central Bank of Nigeria Act, 2007, which vests in the President of the Federal Republic of Nigeria, the authority to appoint the Governor and Four (4) Deputy Governors for the Central Bank of Nigeria (CBN), subject to confirmation by the Senate of the Federal Republic of Nigeria.

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    Tinubu also approved the nomination of four new Deputy Governors of the Central Bank of Nigeria (CBN) for a term of five years at the first instance, pending their confirmation by the Senate. 

    The new Deputy Governors are:

    (1) Mrs. Emem Nnana Usoro

    (2) Mr. Muhammad Sani Abdullahi Dattijo

    (3) Mr. Philip Ikeazor

    (4) Dr. Bala M. Bello

  • Fed Govt orders CBN to resolve imbroglo over foreign airlines’ trapped funds 

    Fed Govt orders CBN to resolve imbroglo over foreign airlines’ trapped funds 

    To resolve the lingering  airlines’ trapped funds, President Bola Tinubu has directed the Central Bank of Nigeria (CBN) to hold quarterly reconciliation meetings  to find a lasting solution to a matter.

    He said the delay in fixing the problem had damaged the country’s reputation in the global aviation industry.

    The Minister of Aviation and Aerospace Development, Mr. Festus Keyamo, stated this yeaterday at the seventh Aviation Africa Summit and Exhibition in Abuja.

    Nigeria leads the pack among countries withholding foreign carriers’ funds with over $812.2 million  trapped as proceeds from ticket sales.

    Nigeria is  ahead of Bangladesh with $214.1 million;  Algeria with $196.3 million ;   Pakistan with $188.2 million and Lebanon trailing fifth with $141.2 million.

    IATA’s Director-General and Chief Executive Officer, Willie Walsh, has warned   that rapidly rising levels of blocked funds constitute  a threat to airline connectivity in the affected markets.

    The industry’s blocked funds, Walsh said,  increased by 47 per cent  to $2.27 billion in April 2023 from $1.55 billion in April 2022.

     Walsh said: “Airlines cannot continue to offer services in markets where they are unable to repatriate the revenues arising from their commercial activities in those markets.

    “Governments need to work with industry to resolve this situation so airlines can continue to provide the connectivity that is vital to driving economic activity and job creation” .

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    IATA urged governments to abide by international agreements and treaty obligations to enable airlines to repatriate these funds arising from the sale of tickets, cargo space, and other activities.

    Keyamo noted that the current administration was open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector.

    The Minister noted that the current administration was aware that one of the setbacks entrepreneurs have suffered in Nigeria in recent years is the fluctuation of foreign exchange and its availability, stressing that it is the vision of this current administration to make Nigeria the aviation hub of Africa.

    He, however, noted that in order to attract foreign investors, the government is already looking at the following areas to improve aviation business in Nigeria through infrastructure upgrade, upgrading of the Category Three Instrument Landing System (ILS) at major airports, construction of the second runway in Abuja, airport improvement programmes through concession and government willingness to partner with companies to turn major airports into aerotropolis.

    Other initiatives in the aviation sector roadmap which he said the government has fully adopted include the creation of aircraft leasing companies.

    The government, according to the Minister, welcomes major players in aircraft leasing and head lessors to invest in Nigeria airlines to provide state-of-the-art aircraft, adding that the government would ensure enforcement of contract agreements and the rights of investors and all parties are protected.

    Nigeria, being a signatory to the Cape Town Convention he reiterated would help to uphold the international convention.

  • Blocked funds: FG orders CBN to hold quarterly reconciliatory meetings with airlines

    Blocked funds: FG orders CBN to hold quarterly reconciliatory meetings with airlines

    The federal government has ordered the Central Bank of Nigeria (CBN) to hold quarterly meetings with foreign airlines operating in Nigeria as part of measures to pay back their blocked funds.

    The Minister of Aviation and Aerospace Development, Festus Keyamo disclosed this on Wednesday, September 13, in Abuja at the 7th Aviation Summit.

    Before the directive by the minister, foreign airlines had found it difficult to get their funds due to Nigeria’s foreign exchange policy.

    Keyamo, while stating that he believes that a proactive approach is necessary to find a lasting solution to the issues, added that the federal government was also addressing the challenges associated with foreign exchange supply which resulted in the huge sum of money being owed foreign airlines.

    He said: “The current administration is aware that one of the setbacks entrepreneurs have suffered in Nigeria in recent years is the fluctuation of foreign exchange and its availability.

    “This administration is committed to ensuring that forex is readily available to entrepreneurs and I have directed that the Central Bank of Nigeria (CBN) hold quarterly reconciliation meetings with a view to resolving this issue.”

    He also noted that President Bola Tinubu was in the United Arab Emirates a few days ago to resolve the issue of blocked funds, amongst other issues.

    Read Also: CBN okays digital platform to ease forex challenges

    He also hinted that the federal government was willing to give tax breaks to interested investors in the aviation sector.

    The minister said: “The current administration is open to providing tax holidays to encourage existing and new entrants into the Nigerian aviation sector.

    “I wish to reiterate that my administration, will continue to sustain the support being given to the industry.”

    Keyamo also unveiled three roadmap projects comprising Aerotropolis, Aircraft Leasing Company, and Maintenance, Repair and Overhaul facility.

    In addition to the roadmap, he said he would focus on five areas to realize the country’s vision of making Nigeria the Aviation hub of Africa.

    The areas listed include infrastructure upgrades, aircraft leasing company, maintenance repair and overhaul (MRO) facility, and forex availability.

    He said: “As you are all aware, air transport remains an essential component of the global transportation system and it’s a crucial driver of economic, social and cultural development worldwide. Air transport generates economic growth and development, provides jobs, and fosters a range of socio-economic benefits.

    “In order to continue to harness and maximize the benefits of air transport in Africa, it is essential and expedient to continue to promote collaboration, knowledge sharing, and business development within the African aviation community that would practically address all the significant and structural challenges.

    “Having this unique and important event for the seventh time demonstrates the organizer’s determination and interest to support the sustainable development of air transport in Africa. I therefore wish to take this opportunity to appreciate Times Aerospace Limited who has been the champion of the Aviation Africa Summit as well as making Nigeria the first country to host this noble event in West Africa.

    “The recent global events further exposed the immense contribution and importance of air transportation as a catalyst for economic development, the vital engine of global socio-economic growth, one of the greatest contributors to the advancement of modern society, and a key instrument for achieving the United Nations Sustainable Development Goals (SDGs). These underscore why the world was greatly impacted when international aviation was disrupted by the pandemic and other global occurrences.”

    The Vice President of the International Air Transport Association (IATA) Africa and Middle East, Kamil Al Alwadi, condemned the high airport charges in Nigeria.

    He said: “In a recent research conducted, we discovered that the most expensive airport in Africa is Abuja airport, followed by Lagos airport with all these exorbitant charges, Nigerian airlines can’t compete with their foreign counterparts.

    “Africa has put itself in a place where it cannot help its own, expensive fuel, excessive charges, leasing, and insurance through the roof, the airlines need to be financially viable too. The airlines contribute to the country but Nigeria needs to decide what to do to them to survive.

    “However, despite the challenges, the industry continues to move towards profitability following the COVID disruption and could be back as soon as next year. Underpinning this is the robust demand for air travel. As we saw in the second quarter of 2023 – and for two consecutive quarters – African carriers had one of the world’s highest annual passenger traffic growth rates, second only to Asia Pacific.

     “With total traffic up 38.9% compared to the same quarter in 2022, African carrier’s growth outperformed the industry-wide average for total and international traffic, even though the region has not fully recovered to pre-pandemic levels.

    “Q2 2023 RPKs were 9.2% below the same quarter in 2019. Despite this continued positive performance, the region still confronts economic challenges that severely limit the affordability of air travel, in addition to a range of infrastructure issues that curb capacity and hinder the development of consistent air service.

    “As you can see, the continent stands out as the region with the greatest potential and opportunity for aviation. But this potential is limited by safety incidents, infrastructure constraints, blocked funds, high costs, lack of connectivity, regulatory impediments, slow adoption of global standards, and skills shortages, among other factors.”

  • CBN okays digital platform to ease forex challenges

    CBN okays digital platform to ease forex challenges

    Central Bank of Nigeria (CBN) has approved a digital platform, called Swap by Flutterwave, to facilitate access to foreign currency at competitive exchange rates.

    Payments technology firm, Flutterwave, in a statement yesterday, said Swap by Flutterwave was launched in partnership with Wema Bank and Kadavra BDC.  

    The firm said the product comes “at a time Nigerians and businesses have limited access to foreign currencies which has posed a challenge for individuals engaging in international transactions, investments, and other financial activities.”

    It noted these challenges have hampered growth and personal financial goals, making it difficult for individuals to access global opportunities.

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    The firm pledged beyond facilitating currency exchanges,  the platform “will ensure every exchange is seamless, secure, and rewarding, granting consumers greater purchasing power and businesses huge investment potential.”

    Founder, Olugbenga Agboola, added: “Swap by Flutterwave represents a leap in how Nigerians will engage with foreign exchange.

    “We understand FX access challenges individuals and businesses face, and Swap is answer to those pain points, providing seamless and efficient platform for currency exchange. We are honoured to have secured regulatory approval and the trust of Kadavra BDC and Wema Bank.”

    Cynthia Onyinyechi, managing director of Kadavra BDC said:“Swap will solve FX problems, and as a digital exchange platform connecting the world in seconds, we are behind Flutterwave”.

    Moruf Oseni, managing director of Wema, said: “Our support for digital innovation in finance has been unrivalled since ALAT. As a bank committed to digital innovation, we are proud to journey with Flutterwave because Swap will impact all sectors.”

  • CBN’s dep gov safe, not detained, says family

    CBN’s dep gov safe, not detained, says family

    The deputy governor of the Central Bank of Nigeria (CBN) in charge of Financial System Stability, Aishah Ahmad is safe and sound.

    A statement from Aisha’s family confirmed that she’s not under confinement.

    The Nation reports that all deputy governors of the CBN are being interviewed one after the other as the investigator appointed by President Bola Tinubu examines the bank’s books under the suspended governor, Godwin Emefiele.

    A statement from Aisha’s family clarified: “We wish to reassure everyone that Aishah Ahmad is home with her family and not detained by the DSS.

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    “She is safe and sound. In these times, it is essential to maintain clarity and rely on verified information only.

    “Mrs Ahmad’s cooperation with the authorities is a demonstration of her commitment to transparency and due process.

    “It is crucial that the public exercise discretion when evaluating news reports and avoid engaging in unfounded rumours or misinformation.”

  • CBN to ‘clear $10b forex backlog in two weeks’

    CBN to ‘clear $10b forex backlog in two weeks’

    The Central Bank of Nigeria (CBN) is  working with commercial banks to clear $10 billion foreign exchange (forex) backlog within the next two weeks, it was learnt yesterday.

    Acting Governor Folashodun Shonubi broke the news  at a  forum yesterday in Lagos. He  said the backlogs would be cleared through different structures within the forex market.

    He said banks, which control 75 per cent of the forex transactions, will play significant role in seeing that the backlog are cleared.

    The backlogs, estimated at about $10 billion, include dollar requests from manufacturers and importers purchasing raw material inputs from abroad, parents paying their children’s tuition fees abroad, Nigerians paying medical bills abroad, travellers sourcing Business Travel Allowances (BTAs)  and Personal Travel Allowances (PTA), among others.

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    These requests were stalled for years due to dollar scarcity, drop in foreign direct investments (FDIs) and foreign portfolio investments (FPIs) inflows, drop in foreign reserves positions amongst other offshore investment opportunities.

    Shonubi said the local banks have been working with the apex bank on various structures to clear it.

    “As matter of fact, there is a large amount of the obligations that the banks in Nigeria have already taken on. So, what happened was that at maturity, they actually make the foreign exchange available for those who needed to use them like importers and what have you.

    “There are some customers who still have their obligations and part of the restructuring with the banks in Nigeria, is also to clear that backlog. That is something we have been discussing for a while. I expect that we will do that, within the next one or two weeks.

    “What that means, therefore, is that this obligation that people keep on talking about will not be left. Today, we still intervene in the market, so it is not as if it has affected our ability to make monies available to banks in the Investors and Exporters foreign exchange market,” Shonubi said.

    He explained that considering the volume of forex interventions, role and the depth of the CBN intervention is overemphasised.

    “When we look at the volumes, the Central Bank of Nigeria today contributes less than 25 per cent into the forex market. And the aim if you remember about a year and a half ago, was that the Central Bank did not want to be a regular player, but more of intervening to stabilise the rates and that is where we are going,” Shonubi said.

    He added that a lot  of forex transactions go on through the commercial banks without the CBN’s input.

    “There are so much more foreign exchange that people don’t talk about, that is being made available through the banking system and banks are selling to their customers. It doesn’t come to the Central Bank, it doesn’t appear as part of the demand that comes to us. And it is significant. It is almost three times what we as a Central Bank make available,” Shonubi said.

    He also  cleared what he called ‘misinformation’ that the CBN owes JP Morgan $7 billion forex forwards.

    “I think you have misinformation. There is no outstanding $7 billion with JP Morgan in any form. It was based on the opinion that was put on paper and everybody jumped on it,” Shonubi said.

    But the 2022 audited financial statements of the CBN  showed that the apex bank received combined $15 billion cash from JP Morgan and Goldman Sachs in one year.

    The CBN Group, the financial statements said, had entered into a securities lending agreement with Goldman Sachs and J. P. Morgan and as part of the agreement, the Group pledged its holdings on foreign securities in return for cash.

    The statement explained that the cash received from Goldman Sachs was N0.23 trillion ($500 million), 2021: N0.22 trillion ($500 million) and JP Morgan N3.23 trillion ($7 billion), 2021: N3.05 trillion ($7 billion) was recognised in other foreign securities, bringing liabilities with both global institutions to $15 billion.

    Shonubi also spoke on the need to modernize bureau de change (BDCs) operations,  challenging operators to be technology compliant or lose their licenses.

    He said the current BDC market is largely cash-driven, and  plan of the apex bank is to modernize their operations to reduce cash interactions.

    Accusing BDCs of round-tripping, Shonubi said the BDCs were created to sell small value forex transactions,  but the operators abandoned that role.

    “Even when they get the dollars that is available, they would rather keep it and sell in the black market,” Shonubi said.