The banks, whose suspension would remain in force until they remit all the funds to the TSA, include United Bank for Africa (UBA) $530m; First Bank of Nigeria (FBN) $469m; Diamond Bank Plc ($287m); Sterling Bank Plc ($269m); Sky Bank Plc ($221m); Fidelity Bank ($209m); Keystone Bank ($139); First City Monument Bank (FCMB) $125m; and Heritage Bank ($85m).
Two days ago, the banks came under fire from the apex bank, which accused them of engaging in round tripping and threatening to punish them for doing so. Many of the banks declined official comments on the development.
However, UBA said: “Our attention has been drawn to report of the ban of UBA from the foreign exchange market by the CBN over the non-remittance of NNPC/NLNG dollar deposits. 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.”
An official of Fidelity Bank said: “NLNG was paying dividends from the investment of the government in the company to the NNPC. These dividends had accumulated to about $5billion.”
“When the goverment raised the issue that the dividends should have been paid into the Federation Account, the CBN Governor invited the CEOs of all the banks that had the funds to Abuja for a meeting on the following: a reconciliation of the amount in each bank with the records of CBN/NNPC; and agreed a repayment time table of the funds with the banks;
“As at the time the TSA Implementation commenced in September 2015 some of the banks had paid back over 50 per cent of the funds based on the repayment timetable;
“This repayment by the banks was the bailout of $2.1bn (N414billion) that was shared by the FGN and state governments in July/August 2015.
An official of FCMB who spoke on condition of anonymity, said: We are working with the Central Bank of Nigeria on an amicable resolution. This is really a function of the dire macroeconomic situation and liquidity in the FX markets, rather than concealment, or wilful non-compliance by banks.”
A Diamond Bank source said bank never concealed any funds. The official, who asked not to be named, said Diamond Bank had actually paid $500million to date. He said the banks approached the CBN, pleading that the balance be paid in naira, since the value of the local currency has fallen so badly, as well as the fact that there is acute shortage of the greenback, the Nation reports.
