CBN, Banks to Stop Sale of Forex for Payment of School Fees, Medical Bills

Central Bank of Nigeria (CBN) and the Deposit Money Banks (DMBs) will no longer issue foreign exchange for the payment of  school  fees and medical bills.

These items constitute 15% of foreign currency demands in the country.

The development was made known by the Director, Banking Supervision of Central Bank of Nigeria (CBN), Mrs Tokunbo Martins, who spoke at the end of the Bankers Committee meeting, in Abuja, yesterday.

Mrs. Martins, while the decision is a painful sacrifice which Nigerians have to bear in the short term, it will have a long term benefit for Nigerians and the economy as the banks have resolved that most of the foreign exchange demands would now be granted to  develop the real sector.

Also, in his remarks, the Managing Director of Access Bank, Mr Herbert Nwigwe, explained that the banks have decided to channel such forex to the real sector because those demands tend to crowd out demands to import raw materials and to support industries.

The bank chiefs also said that there is a deliberate effort to increase the rate of financial inclusion which has risen from 30 per cent to 40 per cent in recent times and now it is at 66 per cent. However, they said that their target is to get to 69 per cent before December 2016. This, they said, is by creating agency banking in the north east and introducing policies which will make accounts opening a lot more easier.

Other bank chief executives present on the occasion include, Managing Director of Diamond Bank of Nigeria, Mr Uzoma Dozie; Managing Director of Standard Chartered, Mrs Bola Adesola as well as Director, Corporate Communication of  CBN, Mr Ibrahim Muazu.