Banks Face Legal Threat From OPS For Rejecting $7bn FX Applications

Banks Face Legal Threat From OPS For Rejecting $7bn FX Applications....KINDLY READ THE FULL STORY HERE▶

Several businesses within the Organised Private Sector of Nigeria are contemplating legal recourse against certain commercial banks for their failure to fulfill forex requests, which have remained unresolved for an extended duration.

The OPSN is also advocating for a thorough examination of the Central Bank of Nigeria’s forex backlog payments, prompted by the recent assertion from the apex bank suggesting that all legitimate forex backlogs have been settled.

In discussions with The PUNCH, OPS members contested the apex bank’s assertion, claiming that the settlement process for the backlogs lacked transparency and failed to prioritize full disclosure.

This potential legal action comes despite a recent stakeholder meeting, held on March 21, 2024, at the Bank of Industry in Lagos, which included NACCIMA, MAN, affected banks, and customers, convened by the Minister of Industry Trade and Investment.

The CBN, in a statement released by its Acting Director of Corporate Communications, Mrs. Sidi Ali, announced the successful clearance of all valid forex backlogs, effectively eradicating a longstanding burden.

Moreover, the CBN reported a substantial increase in external reserves, reaching $34.11bn as of March 7, 2024, the highest level in eight months. Notably, the payment of $1.5bn resolved obligations to bank customers, eliminating the residual balance of the FX backlog.

Mr. Olayemi Cardoso, the CBN Governor, emphasized the significance of clearing the FX backlog to restore credibility and confidence in the Nigerian economy during a recent meeting.

This clearance aligns with the strategy outlined during the Monetary Policy Committee meeting held the previous month. In January, the CBN disbursed $500m across various sectors to address the backlog of verified foreign exchange transactions, followed by a $2bn settlement of outstanding commitments across sectors.

In response to the CBN’s claim, Segun Kuti-George, the National Vice President of the Nigerian Association of Small Scale Industrialists, disputed the assertion, stating that numerous businesses still have funds trapped in banks without clarity on what constitutes a valid forex request.

Kuti-George contended that some businesses are considering legal action against banks to compel CBN intervention, citing lack of communication regarding rejected requests and perceived propaganda regarding the validity of requests.

He emphasized the need for transparency and resolution, indicating that affected businesses are contemplating legal action against banks, potentially implicating the CBN in the process.

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