Reps discover 5 banks withholding $5bn in forex - Newstrends
Connect with us

News

Reps discover 5 banks withholding $5bn in forex

Published

on

House of Representatives

Reps discover 5 banks withholding $5bn in forex

On Wednesday, the House of Representatives discovered that five banks were withholding $5 billion in currencies.

Worried about the country’s foreign exchange market instability, the House directed the joint Committees on Banking Regulations and Banking Institutions to hold an investigative hearing into banks and financial institutions’ failure to comply with CBN directives on Net Open Position Limits.

The resolution was passed after the adoption of a motion on a Matter of Urgent National Importance regarding the need for banks to implement the CBN’s policies on holding excess long foreign exchange and net open position limits, sponsored by Chairman of the House Committee on Defence, Hon. Babajimi Benson.

In his lead debate, Hon. Benson, who observed that the apex bank is tasked with regulating the monetary policies of the country as provided for by the CBN Act, frowned upon the blatant disregard for extant financial regulations.

According to him, “Records show that GTB, Zenith Bank, UBA, and First Bank have a cumulative excess holding of over $5 billion as of January 2024. The only fully compliant bank is Stanbic IBTC, which has made all FX in its reserve available to their clients.

“It is important to note that these banks often obtain foreign exchange either through purchase, borrowing, or allocation from the CBN at the official rate of N461.5 to a dollar for their various customers but hoard them as part of their bank balances or reserves. They eventually sell at higher rates to make extra profit.

“It is this speculative practice that has prompted the CBN to issue a fresh directive centered around the Net Open Position (NOP) for all commercial banks. Simply put, the NOP measures the difference between a bank’s foreign currency assets (what it owns) and foreign currency liabilities (what it owes). Investigations have shown that banks hold far more forex than they require, thereby creating artificial scarcity and an increase in the exchange rate.

READ ALSO:

“The new CBN directive will help limit how much foreign exchange banks can hold and for how long. The aim is to discourage hoarding of forex, thereby making it available for intended users at reasonable rates.

“Despite measures adopted by CBN in the past and based on previous experiences with CBN policies directives, many banks are in default of its implementation. This explains why eight banks currently hold a huge NOP of over $6 billion while there is a biting scarcity. This motion will provide the legislative impetus for the required action to compel them to fully comply with the directive.”

Hon. Benson observed that Section 8 (4) and (5) of the CBN Act require that the CBN Governor is expected to brief the relevant Committees of the National Assembly during the semi-annual hearings as well as provide periodic reports on the performance of the economy to the National Assembly.

While frowning upon the non-compliance to the extant law, Hon. Benson lamented that: “there has been a steady rise in the rate of the dollar in comparison to the naira. It rose to N1,520 to the dollar last week.

“The House is also concerned that this astronomical rise has been caused by diverse market forces and certain economic policies adopted by the government, including the liberalization of the dollar.

“The House is further concerned, however, that commercial banks and certain financial institutions in Nigeria usually hold back a large part of forex they obtain either through purchase, borrowing, or allocation from the CBN rather than lending to their customers with a view to selling it when the exchange rate is high.

“The House is worried that this speculative activity by commercial banks and certain financial institutions has further exacerbated the harsh economic situation in the country and led to difficulty by legitimate businesses to obtain forex for their business transactions.

“The House is aware that the CBN has intervened by introducing new monetary policies to check the rise in the rate of the dollar, among which are the Net Open Position Limits and holding excess long foreign exchange.

“The House is also aware that commercial banks and certain financial institutions are reluctant to implement the monetary measures put in place by the apex bank to check these unwholesome practices by banks and other financial institutions in the country.

“The House is concerned that unless drastic legislative measures are taken to enforce the implementation of these directives, the country will continue to experience dire economic hardship as a result of the continuous rise in foreign exchange rates,” he warned.

To this end, the House mandated its Committee on Legislative Compliance to ensure full implementation.

Reps discover 5 banks withholding $5bn in forex

News

Insecurity in Nigeria: US Lawmaker Accuses Matawalle of Attempt to Silence Global Scrutiny

Published

on

A United States lawmaker, Kimberly Daniels
A United States lawmaker, Kimberly Daniels

Insecurity in Nigeria: US Lawmaker Accuses Matawalle of Attempt to Silence Global Scrutiny

A fresh controversy has erupted over Nigeria insecurity, drawing international attention after a United States lawmaker, Kimberly Daniels, accused the Minister of State for Defence, Bello Matawalle, of attempting to suppress global scrutiny of ongoing violence across parts of the country.

Daniels, a member of the Florida House of Representatives and Chairwoman of the United World Congress of Diplomats, made the allegations during a Facebook Live broadcast, where she claimed there were coordinated efforts linked to the minister to influence American officials and control the narrative surrounding the security crisis in Nigeria.

According to Daniels, her earlier statements highlighting what she described as targeted killings in Nigeria, particularly affecting Christian communities, triggered pressure from individuals she alleged were associated with Matawalle. She said these efforts included attempts to discredit her report, circulate counter-narratives, and lobby U.S.-based elected officials to publicly oppose her position. Daniels further alleged that an unnamed American lawmaker was “persuaded” to defend Nigeria’s defence leadership, raising concerns about possible external influence on U.S. political voices.

“I am speaking on behalf of people who say they are under attack,” Daniels stated, emphasizing that her intervention was intended to call for investigation into the violence in Northern Nigeria rather than make outright accusations. She insisted that no amount of pressure would silence her, citing her constitutional right to speak on international human rights issues.

READ ALSO:

The controversy stems from a report released on April 14, 2026, by Daniels under the UN-WCD, which spotlighted escalating insecurity in Northern Nigeria, particularly in the North-Central and North-West regions. The report referenced attacks during the Easter period in Plateau, Kaduna, and Nasarawa states, noting what it described as a widening gap between government assurances and the realities faced by communities on the ground.

In addition to documenting the Nigeria killings crisis, the report questioned the credibility of the current defence leadership and recommended a review of the country’s security architecture. It specifically called on Bola Tinubu to consider redeploying Matawalle and initiating a transparent investigation into both the security situation and the allegations of influence operations.

Daniels maintained that her findings were based on testimonies from affected communities, contributions from members of the Nigerian diaspora, and intelligence gathered through the UN-WCD’s multinational network spanning the United States, Nigeria, Ghana, the United Kingdom, and Canada. She stressed that the aim was to promote accountability and draw global attention to the worsening insecurity in Nigeria, not to interfere with the country’s sovereignty.

As of now, Matawalle has not issued an official response to the allegations. However, the development has sparked debate within political and diplomatic circles, with some Nigerian stakeholders cautioning against foreign involvement in domestic security matters, while others argue that international attention could help address the Nigeria security crisis more effectively.

The situation underscores growing global concern over banditry in Nigeria, insurgency, and communal violence, as well as increasing scrutiny of how Nigeria’s defence leadership is handling the crisis. It also highlights the expanding influence of diaspora voices and foreign lawmakers in shaping international narratives around Nigeria’s internal security challenges.

Insecurity in Nigeria: US Lawmaker Accuses Matawalle of Attempt to Silence Global Scrutiny

Continue Reading

News

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

Published

on

Minister of Finance and Coordinating Minister of the Economy, Wale Edun
Wale Edun

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

President Bola Ahmed Tinubu has reportedly approved a minor cabinet reshuffle involving key changes in the Federal Executive Council (FEC), including the removal of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, alongside the Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa.

The development was said to have been contained in a memo signed by the Secretary to the Government of the Federation (SGF), Senator George Akume, directing immediate transition processes across the affected ministries.

Wale Edun, Dangiwa Relieved of Ministerial Duties

According to the reported directive, Wale Edun has been asked to hand over duties at the Ministry of Finance and Coordinating Minister of the Economy. Similarly, Arc. Ahmed Musa Dangiwa is to vacate his position as Minister of Housing and Urban Development.

READ ALSO:

The memo reportedly instructed that all handover processes be concluded on or before close of business on Thursday, April 23, 2026, ensuring a smooth administrative transition within the affected ministries.

Succession Arrangements and Ministerial Changes

The document further stated that Mr. Taiwo Oyedele has been named as the incoming Minister of Finance and Coordinating Minister of the Economy, following Edun’s exit.

In the housing ministry, Dr. Muttaqha Rabe Darma has reportedly been nominated as Minister-designate for the Ministry of Housing and Urban Development, pending formal confirmation procedures. Until then, Dangiwa has been directed to hand over to the Minister of State within the ministry.

Presidency Explains Reason for Reshuffle

Explaining the development, SGF George Akume was quoted as saying the changes are aimed at improving cohesion, synergy in governance, and economic delivery under the administration’s Renewed Hope Agenda.

He added that President Tinubu acted within his constitutional powers under Sections 147 and 148 of the 1999 Constitution (as amended), emphasizing that cabinet adjustments remain part of ongoing efforts to improve governance efficiency.

Presidential Appreciation and Next Steps

The memo also reportedly conveyed President Tinubu’s appreciation to outgoing ministers for their service to the nation, while wishing them success in their future engagements. It further indicated that the President assured Nigerians and cabinet members that government reinvigoration efforts will continue periodically.

 

 

BREAKING: Tinubu Allegedly Shakes Up Cabinet, Removes Wale Edun, Ahmed Dangiwa

 

Continue Reading

News

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

Published

on

Ikeja Electric

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

A power distribution company has announced plans to hold its April Virtual Stakeholder Engagement aimed at educating customers on safety measures during the rainy season.

In a notice issued to customers, the company said the virtual session would focus on the dangers associated with exposed electrical wires, flooded installations, and the increased risk of electric shock that often accompanies heavy rainfall.

The engagement, scheduled for Thursday, April 23, 2026, from 11:00 a.m. to 1:00 p.m., will be held via Microsoft Teams, allowing participants to join remotely.

According to the company, the initiative is part of efforts to promote public safety and reduce electricity-related accidents during the rainy season, when infrastructure is more vulnerable and risks are heightened.

READ ALSO:

Beyond safety concerns, the session will also provide practical tips to help customers navigate the season safely, including guidance on energy efficiency to reduce consumption and costs.

The company further disclosed that it would share updates on its waste-management support initiatives targeted at public schools, as part of its broader corporate social responsibility programmes.

Customers and other stakeholders are encouraged to participate in the session to gain valuable insights and contribute to discussions aimed at improving safety and sustainability in communities.

The company reiterated its commitment to customer welfare, urging the public to remain vigilant and adhere to recommended safety practices during the rainy season.

Power Firm to Hold Virtual Stakeholder Meeting on Rainy Season Electrical Safety

Continue Reading
HostArmada Affordable Cloud SSD Shared Hosting
HostArmada - Affordable Cloud SSD Web Hosting

Trending