Central Bank of Nigeria reinstates UBA into FX market

The Central Bank of Nigeria (CBN) has readmitted United Bank for Africa (UBA) into the Foreign Exchange Market following its remittance of all NNPC/NLNG dollar deposits.

The UBA was delisted on Wednesday night from the list of nine Deposit Money Banks (DMBs) banned from the foreign exchange market, for hiding over $2 billion belonging to Nigerian National Petroleum Corporation (NNPC) from the Treasury Single Account (TSA).

A statement from UBA to NEWSVERGE reads, “We are pleased to inform our valued customers, stakeholders and business partners as well as the general public that the CBN has re-admitted us into the Foreign Exchange Market following our remittance of all NNPC/NLNG dollar deposits.”

UBA was named as one of the nine commercial banks temporarily suspended by the CBN from participating in the foreign exchange market for failing to remit $2.12 billion dollars belonging to the Nigeria National Petroleum Corporations to the Treasury Single Account on Tuesday.

In immediate reaction to the news of the suspension, UBA had rebuffed the claim stating that it has remitted into the Single Treasury Account (TSA) domiciled at the Central Bank of Nigeria (CBN) all dollar deposits belonging to the Nigerian National Petroleum Corporation (NNPC) and Nigerian Liquefied Natural Gas Company (NLNG).

The Bank in reaction said: “We wish to state very categorically that UBA has completely remitted all NNPC/NLNG dollar deposits. “We thank all our numerous customers, business partners and other stakeholders who have reached out to us on account of this report.”

In the same vein, ’Tokunbo Martins, Director, Banking Supervision, CBN, confirmed that the UBA is now free to operate in the Foreign Exchange Market.

Martins in a statement said, “Further to the directive of the Central Bank of Nigeria (CBN) to all Deposit Money Banks (DMBs) to return all outstanding unremitted NNPC/NLNG foreign currency, this is to confirm that the United Bank for Africa (UBA) Plc has remitted all outstanding NNPC/NLNG deposits in its possession to NNPC’s Treasury Single Account (TSA) at the CBN.

[mailerlite_form form_id=1]

“Accordingly, the United Bank for Africa (UBA) Plc has been re-admitted into the Foreign Exchange Market effective Thursday, August 25, 2016.”