The Central Bank of Nigeria, CBN, has warned banks against contravening its directive to transfer the N3.5 trillion public sector funds with them to it.
The apex bank said the erring banks would face “severe financial and administrative sanctions”.
Sources revealed that while the deposits draw nearly zero interest, ministries, departments and agencies (MDAs) are borrowing at double digit rates from the banks.
A source said CBN and Office of the Accountant-General of the Federation (OAGF) would ensure that the deposits are kept with the supervisory bank for easy access whenever the need arises.
However, the banks which have had a free run with the deposits for years seem not ready to comply with the directive. The transfer is expected to be made within 24 hours of the value date of such collections, which started from February 28, 2015.
Warning banks of the consequences of non-compliance with the directive, the office of CBN Director, Banking Supervision, said they risked being sanctioned.
A source added that their licences may be suspended.