The Central Bank of Nigeria (CBN) has lifted the travel ban on bank chief executives, which was imposed between July 5 and August 15. The ban was put in place to ensure their availability for questioning regarding the ongoing foreign exchange (FX) crisis and concerns of possible exploitation of the decision to unify exchange rates.
The move was prompted by suspicions that some bank executives were taking advantage of the exchange rate unification by selling foreign exchange at inflated rates. A confidential source revealed that bank executives were benefitting from the naira’s decline and were involved in activities such as round-tripping and money laundering after receiving forex from the CBN.
The CBN’s decision to lift the travel ban follows a meeting between Acting CBN Governor Folashodun Shonubi and President Bola Ahmed Tinubu. A CBN spokesperson clarified that the travel restrictions were not punitive but necessary for national duty and to address the FX crisis.
To tackle the FX situation, the CBN had allocated weekly FX to Deposit Money Banks (DMBs) to meet genuine demands and encouraged Nigerians with legitimate transactions to acquire FX from DMBs. However, some banks extended processing times for accessing FX, causing concerns about transparency and adherence to policy.
The lifting of the travel ban indicates the CBN’s commitment to fostering accountability and transparency within the banking sector and stabilizing the naira’s value. While the travel ban was criticized for potential disruptions to business operations, the CBN’s actions suggest it aims to ensure responsible practices among banks in handling foreign exchange.
