Mr. Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), has strongly cautioned banks that they will be subject to swift and harsh penalties if they are discovered to have violated the recently enacted FX Code.
During the Code’s Abuja introduction, Cardoso stressed the importance of management teams and bank board chairpersons setting an example for authorized dealers by upholding the values of moral and open foreign exchange transactions.
He vowed to stop the unscrupulous activities that have historically taken advantage of Nigeria’s people and economy.
“We must remember our starting point. Market integrity was seriously compromised by the multiple exchange rate era, which favored a small number of Nigerians at the expense of the majority, according to Cardoso.
He said that it took more than a year to verify $7 billion in FX backlogs, and the process exposed several unethical and unlawful behaviors. “Final settlements will be processed in accordance with the forensic verification process, which is almost finished,” he stated.
Additionally, Cardoso blasted the over-reliance on ways-and-means funding, pointing out that it had seriously harmed the economy by causing inflation, currency devaluation, and a decline in public trust.
“These practices must never return. The FX Code is a firm rejection of such distortions and a strong commitment to a future defined by fairness, trust, and market-driven principles,” he continued.
Board chairs, managing directors, and chief compliance officers are among the bank executives who the governor asked to implement the new requirements in their companies.
“Let me reiterate, the era of opaque practices is over. We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets,” he issued warning.
Cardoso called on all parties involved to do their bit to preserve the FX Code’s values, calling it a legally obligatory commitment to accountability and openness.