Business
Expert Faults CBN’s Ban Of FX Sale To BDC
An economist and lecturer at the Department of Economics, Federal University, Wukari in Taraba State, Dr Emma Okeh, has criticised the Central Bank of Nigeria’s (CBN) ban on the sale of Foreign Exchange (FX) to the Bureau De Change (BDC)
The university don chided the Federal Government for doing ‘trial and error’ with the nation’s monetary policy through the CBN.
He said that the possibility of the Federal Government reversing the policy in a couple of months was high, adding this will trigger inflation in the market.
Okeh, while interacting with the aviation correspondents in Port Harcourt, last Friday, noted that the economy was already dollarised, saying the new policy will reduce the circulation of dollar in the local economy and increase the prices of goods in the market.
“The response of prices will be instantaneous, particularly on items like electronics, because sellers will anticipate an increase in the cost of importing new items”, he said.
The economist also said the policy might lead to hoarding of foreign currencies, as some of the Bureau De Change operators may be privy to the decision to ban sales to them.
“Traders will anticipate an increase, in the short run, the commodity market will respond. This affects all the sectors on the immediate. People will react. The economy is dollarised already. The circulation will dwindle. Some are waiting for this policy to make profit. Some could be privy to this information. Hoarding will be an issue. This will be a big blow to the economy.
“Before you carry out any policy, it is expected you put a few things in place. Putting this policy out, what are the regulations put in place to regulate prices?
“This administration has been doing trial and error. In the long run, the economy is still oil-dependent. As you continue to import items, the demands for dollar and other currencies will continue to increase against the Naira.
“In the next couple of months, the policy will probably be reverted. The aftermath has not been well evaluated”, Okeh posited.
According to him, inflation in Nigeria stands at 17.75% in the month of July and scarcity of Forex Exchange in the parallel market could lead to higher demands with the resultant effect on commodities.
Most goods, he said, were imported into the country, hence, the demand for certain foreign currencies will increase and ultimately affect the prices of imported goods.
“Before this announcement of BDC, we already had spikes in the prices of vehicles. With this ban, only God can tell”, he said.
The CBN governor, Godwin Emefiele had, last Tuesday, announced the ban of sale of FX to BDC in an effort to sustaining the gaps in the foreign currency market.
According to Emefiele, the BDC are now agents that facilitate graft and curruption in the country, and that CBN can not continue with the bad practice.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
-
News3 days ago
Decentralizing Pipeline Surveillance Poses Greater Dangers To Niger Delta …. Group Warns
-
Politics3 days agoAPC Resumes Electronic Membership Registration Nationwide
-
Rivers3 days agoCourt Rules Out Interim Administration In Jumbo House, Bonny
-
Business3 days ago
33 Banks Raise N4.65tn As Recapitalisation Ends
-
Politics3 days agoAlleged Coup: Protests Rock N’Assembly As Detained Officers’ Children, Wives Demand Justice
-
Nation3 days agoNile University Hosts ICA Nigeria First National Confab On Global Communication
-
Sports3 days ago
Lewandowski Leads Top Stars Missing From W/Cup Roll Call
-
Sports3 days agoPara Games: Team Rivers Wins 53 Medals On Day 5 … Director Praise Athletes