Banks selling foreign currency illegally have been threatened with sanctions by the Central Bank of Nigeria (CBN).
Folashodun Shonubi, the CBN’s acting governor, revealed this in a speech titled:
The Abuja conference “Diaspora Remittances and Nigerian Economic Development” emphasized the significance of taking strong measures to limit illegal remittances and direct them via appropriate channels in order to maximize economic growth.
Shonubi announced the creation of a commission that would pay impromptu visits to banks that were allegedly selling dollars illegally.
“We need to name and shame commercial banks involved in such malpractices,” he stated. The acting governor also emphasised the shortcomings of the present remittance system, in which he estimated that the cost of transferring money to Sub-Saharan Africa from the diaspora at about 8–9 per cent of every $100, which is described as the highest in the world. He, however, noted that Nigeria received about $16.7b in remittances, with the vast majority of the money outside the legal market.
“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,” he stated.
Despite efforts to induce individuals to engage in formal market transactions by granting a N5 refund, he said that the technique has been ineffective, prompting the N5 rebate to be discontinued.
The CBN boss acknowledged the usefulness of incentives in attracting people to the formal market. He stated:
“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.”
Ayodele Adeleke, the Commandant of the National Institute of Security Studies, emphasized the value of the lecture series in raising national security awareness. He claimed that one of the strategies used during the 10-month course to advertise and give the program a focal point was the television series.