…pledges: Unveiling of Commercial Banks Engaged in Unlawful Dollar Transactions
The Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, made a declaration on Thursday, highlighting the significant undervaluation of the Nigerian Naira based on economic modeling employing purchasing power parity.
This revelation surfaced during a lecture titled ‘Diaspora Remittances and Nigeria’s Economic Advancement’ hosted at the National Institute of Security Studies (NISS) in Abuja.
Shonubi conveyed, “An economic modeling of Nigeria through the lens of purchasing power parity unmistakably demonstrates the substantial undervaluation of the Naira at present.”
He underscored the necessity for stringent measures to regulate illicit remittances, channeling them through proper conduits to optimize economic progress.
Shonubi also disclosed the formation of a committee to conduct unannounced visits to banks suspected of participating in unauthorized dollar transactions.
“We have a responsibility to publicly identify and denounce commercial banks implicated in such misconduct,” he remarked.
The acting governor further illuminated the hurdles tied to the prevailing remittance system, where the expense of transmitting money to sub-Saharan Africa from the diaspora hovers around 8-9% per $100, the highest globally.
Curiously, he elucidated that while Nigeria received roughly $16.7 billion in remittances, a substantial portion of these funds remains situated outside the formal market.
“We are actively encouraging individuals to channel funds into the formal sector, pivoting away from informal avenues, given the complexities tied to oversight,” Shonubi appended.
Notwithstanding endeavors to incentivize participation in formal market transactions by offering a N5 rebate, this methodology has proved ineffectual within the context of the open market framework, prompting the cessation of the N5 rebate.
Nonetheless, Shonubi acknowledged the pivotal role incentives play in luring individuals to the formal market.
Furthermore, Shonubi proclaimed an alteration in nomenclature, asserting, “We will rechristen the foreign exchange market, presently known as the I & E market, to the Nigerian Foreign Exchange market, given that it is the singular market we acknowledge.”
The Commandant of the National Institute of Security Studies, Ayodele Adeleke, reiterated the significance of the lecture series in expanding the comprehension of security matters within the nation.
He emphasized that the series forms part of the strategies integrated into the framework of the 10-month course, aimed at promoting and establishing a focal point for the program.
Adeleke appended, “As global economies have grown more interlinked, diaspora communities assume pivotal roles in the economic development of their respective countries, thereby contributing to their overall economic growth.”