CBN Accuses Nigeria’s Private Sector Of Hoarding Dollars

The private sector have been directed to repatriate the foreign exchange earnings obtained from the Central Bank of Nigeria (CBN) to conduct business in the international market.

According to CBN’s Deputy Director, Banking Services, Egboagwu Ezulu, the private sector have a problem repatriating the foreign currencies, as they prefer to keep it abroad after transaction.

Ezulu made the statement on Wednesday, during the maiden conference of the Association of Corporate Affairs Managers of Banks (ACAMB), held in Lagos State.

He explained that Nigeria wouldn’t have foreign exchange scarcity if the private sector were repatriating the forex obtained from the central bank. Ezulu said this compelled the CBN to initiate the RT200, to encourage repatriation.

“We are taking FX out of this country and dumping offshore; when we were told to bring them back. If Nigerians are bringing back FX, we would not be talking about the challenges of FX. There is a challenge for individuals and businesses to do the right thing.

“That is why the CBN introduced the RT200 to encourage you to bring back the dollar you are saying is scarce, but in the books of the banks, we see billions of dollars that have been exported out of the country, and the OPS is not bringing it back, so how do we finance FX demand?” Ezulu said.

Meanwhile, the CBN deputy director advised small and large businesses to approached the Bank of Industry (BOI) and the Development Bank of Nigeria (DBN) for credit support, in a bid to grow their businesses.

Ezulu said the CBN isn’t providing financial support through BOI and DBN due to the low patronage recorded by the two financial institutions, with more disbursement made to commercial banks, that in turn provide loan in double-digit interest.

“When you talk about financing small businesses, the CBN has done a lot of funding to the sector alluding to trillions of naira and has established two entities for this purpose.” He stated, adding, “Has the manufacturing sector approached the entities for the funds available rather than emphasising the commercial banks?

“The manufacturing sector should put pressure on the Bank of Industry and Development Bank of Nigeria to source funds, and when we see a lot of pressure from those two entities, the CBN instead of going through commercial banks would push those funds to those two entities rather than going to the commercial banks who would give double-digit loans.

“I want to appeal that industrialists, as well as small businesses, should approach those two entities to get funding.” Ezulu said.