Central Bank of Nigeria proposes stringent sanctions for banks

In a resolute stance against irregularities in Nigeria’s banking sector, Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) has declared an intent to enforce stringent regulatory measures. Speaking at the recent Monetary Policy Committee meeting in Abuja, Governor Cardoso emphasized the imperative of a proactive regulatory environment to address infractions.

This declaration marks Governor Cardoso’s first such statement since assuming office in September 2023. He underscored ongoing investigations aimed at determining appropriate actions against banks found culpable of infractions. Furthermore, he highlighted the CBN’s efforts in crafting rigorous regulations to cleanse and fortify the nation’s foreign exchange market.

Responding to inquiries regarding measures to enhance foreign exchange trading, Governor Cardoso revealed a notable increase in the country’s foreign reserves. As of February 20, the reserves surged to $34 billion, representing a $2 billion uptick from the preceding month’s $32.23 billion.

In a concerning development, the Nigerian naira has reached an unprecedented low following the recent shift to a floating currency regime and the consolidation of exchange rate windows. From a rate of over N700/$1 in May 2023, the currency has weakened significantly, surpassing N1,500/$1 as of Tuesday.