Home Why CBN banned use of foreign currency as collateral for Naira loans

Why CBN banned use of foreign currency as collateral for Naira loans

Share
Share

By Chioma Obinagwam

 

The Central Bank of Nigeria—the apex of Nigeria has instructed all Nigerian banks to stop accepting foreign currencies as collateral for loans denominated in naira.

 

Confiance News gathered from a circular titled “The use of foreign currency denominated collateral for Naira loans” the official X handle of CBN on Monday.

 

“Consequently, he current practice of using Foreign Currency-denominated collaterals for Naira Loans is hereby PROHIBITED, except, where the foreign currency collateral is: Eurobonds issued by the FG or Guarantees of foreign banks, including Standby Letters of Credit,” the statement disclosed.

 

The statement which was signed by the bank’s Acting Director, Banking Supervision Department, Adetona Adedeji, ordered banks to wound down all loans currently secured with dollar-denominated collaterals with the exception of those stated above, within 90 days.

 

Adedeji added that defaulters will be

sanctioned.

 

 

Share

Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Member

Don't Miss

Five “Ships” That Can Derail Your Divine Purpose

‎‎By Chioma Obinagwam ‎Every person enters the world with a purpose. That was the central message Pastor Femi Atoyebi (SAN), a prominent figure...

Nigerian teen wins Gold at German Mathematics Olympiado‎

A Nigerian secondary school student has claimed gold at one of Europe’s most prestigious mathematics competitions, outperforming students from over 52 countries.‎‎By Chioma...

Related Articles

Five “Ships” That Can Derail Your Divine Purpose

‎‎By Chioma Obinagwam ‎Every person enters the world with a purpose. That...

Nigerian teen wins Gold at German Mathematics Olympiado‎

A Nigerian secondary school student has claimed gold at one of Europe’s...

‎Tinubu announces ₦5.41trn defence budget on democracy day

‎By Chioma Obinagwam‎‎President Bola Ahmed Tinubu marked Nigeria’s 27th year of uninterrupted...

‎Nigeria’s CBN named Central Bank of the Year 2026

By Chioma Obinagwam‎‎Nigeria’s years of painful monetary reform have just earned international...