The Central Bank of Nigeria (CBN) barred bank chief executives from leaving the country between July 5 and August 15 so they could be reached to answer questions on the foreign exchange (FX) crisis.

It was learnt that following the decision to unify the exchange rates, bank executives sold their FX at exorbitant rates.

“The beneficiaries of the naira crash are bank executives who became demi gods because they had dollars to sell,” a source told The Nation.

The official, who pleaded not to be named, said the CBN noticed that even before President Bola Ahmed Tinubu came into office, “bank chiefs were dispensing forex as favours to their families, friends and associates”.

This development, the official said, “was responsible for the delays experienced by customers in accessing forex directly from their banks”.

“Many customers were delayed beyond the time they required the forex,” the source said.

It was also revealed that after the CBN released Forex to the banks, some executives engaged in round-tripping, money laundering and other infractions.

The Nation was reliably informed that the CBN lifted the travel embargo on bank MDs last Tuesday after the Acting CBN Governor, Folashodun Shonubi, met with President Tinubu.

All bank managing directors were placed on a travel ban on July 5 “so they can be reached as at when needed by the CBN”, the source said.

The travel restrictions, the source added, were not a punitive measure but a call to national duty.

The source stressed: “After the government decided to unify the exchange rates, it was noticed that the Naira went into a tailspin and crashed repeatedly.

“The CBN was giving a daily briefing to the President on the development around Forex matters, especially as it relates to the value of the Naira.

“Since the decision to unify the exchange rates was an industry-wide decision, the CBN felt the need to have immediate and direct contact with bank MDs to relay accurate information to the President.

“That was why it placed all MDs on a travel restriction from early July so they can be reached at a moment’s notice.”

Before now, the CBN channelled weekly FX allocation to Deposit Money Banks (DMBs) to meet legitimate demands.

It urged Nigerians with legitimate transactions to purchase FX from DMBs with minimal documentation procedures.

Banks were given 48 hours to settle their customers’ FX demands.

DMBs were directed to set up teller points at designated branches across the country to serve FX requests for Personal Travel Allowance (PTA), Business Travel Allowance (BTA), tuition fees, medical payments and SME transactions, among others.

Banks were also directed to begin accepting cash deposits of FX from their customers and to adequately publicise the locations of the designated branches.

However, banks decided to increase the processing time for accessing FX for international school fees paid through Form A from 48 hours to 120 days, which was a marked departure from the FX policy.

With the ban on travel restrictions lifted, it appears the apex bank has a handle on how to stop the fall of the Naira.

CBN spokesman, Dr. Isa AbdulMumin, said he was not aware of the travel restrictions.

“I did not see the letter imposing the travel restrictions,” he said.

The travel ban, aimed at increasing transparency in the banking sector, has been criticised as overly restrictive and potentially harmful to business.

The CBN’s decision to lift the ban suggests increasing confidence that banks will operate more responsibly. (The Nation)

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