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Your email address will not be published.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

Yilwatda charges youths to defend Nigeria’s democracy

‎The National Chairman of the ruling All Progressives Congress (APC), Professor Nentawe Yilwatda, has called on Nigerian youths to rise to the challenge...

‎How Nigeria can finally escape underdevelopment‎

By Ummie Kabir‎‎A country is classified as developed if it is able to provide qualitative life for her citizenry irrespective of their social...

Related Articles

Yilwatda charges youths to defend Nigeria’s democracy

‎The National Chairman of the ruling All Progressives Congress (APC), Professor Nentawe...

‎How Nigeria can finally escape underdevelopment‎

By Ummie Kabir‎‎A country is classified as developed if it is able...

UBA Q1 2026 Results: Gross Earnings hit N801.5bn‎

‎‎By Chioma Obinagwam‎‎United Bank for Africa (UBA) recorded gross earnings of ₦801.5...

‎A generation under siege as Nigeria’s drug crisis deepens‎

By Blaise Udunze‎‎‎This piece speaks directly to the current consciousness of many...