Central Bank of Nigeria (CBN) Responds to Domiciliary Account-Naira Conversion Rumours

Central Bank of Nigeria (CBN) Responds to Domiciliary Account-Naira Conversion Rumours

People, I do not believe that the Central Bank of Nigeria (CBN) will convert US dollars, Euro and Pounds Sterling in Nigerian bank accounts into Naira as it battles the shortage of foreign currencies in the nation. So, that is a pure rumour, and happily the apex bank has put a statement (see below) that it has no plan to do such.

Yet, if nothing is changed on the framework upon which Nigeria is currently run, I do not rule it out that by 2028, depending on who becomes the next president of Nigeria in 2023, that hitting these accounts would not happen.

Today, there is no need for that as Nigeria has many assets to source for funds including universities which can be privatized or sold!

The statement below.

CBN Categorically Denies, and Strongly Condemns Peddlers of Rumor on Domiciliary Account Holdings,’

“The attention of the Central Bank of Nigeria (CBN) has been drawn to a fake circulation, in social media circles, of a circular with a fake CBN logo curiously dated “13 September 2021”, and purportedly issued by its Trade and Exchange Department to the effect that all Deposit Money Banks, International Money Transfer Operators (IMTOs) and members of the public are to convert domiciliary account holdings into naira.

“We wish to reiterate that the Bank has not contemplated, and will never contemplate, any such line of action. The speculation is a completely false narrative aimed at triggering panic in the foreign exchange market.

It will be recalled that the Bank had previously assured members of the public that there was no plan whatsoever to convert the foreign exchange in the domiciliary accounts of customers into Naira in order to check purported shortage of availability of the United States dollars.

Operators of domiciliary accounts and other members of the banking public are therefore advised to completely disregard these fictitious documents and malicious rumours, and go about their legitimate foreign exchange transactions, as we have no doubt that these rumours
are only aimed at impugning the integrity of the CBN and activating chaos in the system.

The public should note that any circular issued by the Central Bank of Nigeria (CBN) is posted on its website (www.cbn.gov.ng) for the attention of the general public.

We also wish to warn corporate bodies and members of the public against the unauthorized use of the Bank’s logo for any purpose whatsoever. We have drawn to the attention of appropriate authorities to this and culprits will be sanctioned accordingly.”

The statement, which was dated September 11, 2021, was signed by Osita Nwanisobi, Director, Corporate Communications, Central Bank of Nigeria.

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14 thoughts on “Central Bank of Nigeria (CBN) Responds to Domiciliary Account-Naira Conversion Rumours

  1. But by mentioning that the possibility exists come 2028, depending on who becomes the president, you also believe that the CBN could do such? Well, whether those who believe it in 2021 or 2028, both groups have doubts, so they are in the same basket.

    Why is Nigeria continuously experiencing dollar shortage, is it that we suddenly now import more than we used to? People wake up in this country and decide if naira should add more N10 or N15 to its exchange to dollar, it’s never tied to any movement of prices in the international market, yet you wake up another morning, the peddlers still add another N5, and we only shout nawa oo.

    Is the CBN actually the problem, or Nigerians who are hell bent in destroying their own country? I see a lot of abnormal and unconscionable things going on in this land, but it’s very easy to point fingers at Buhari or Emefiele. Those two guys aren’t the problem, we have terrible humans across board, they do not wish Nigeria well.

    Buhari will come and go, same goes for Emefiele, but the destruction we are perpetrating against our own fatherland will haunt all of us much longer, and no blame game can excuse any of the culprits.

    We all have a responsibility to salvage Nigeria, our actions, inaction and utterances need to reflect that.

    Some might be comfortable today, but their children or grandchildren might suffer the consequences, long after they are gone.

    Many of the developed nations we are running to today will still collapse in few decades, so if you like, burn your village, we shall see.

    Reply
    1. “We all have a responsibility to salvage Nigeria, our actions, inaction and utterances need to reflect that.” – I am bullish on Nigeria. Yet, most of the issues are own-goals. For example, what is the justification of locating a naval base in Kano if not for the same demons to be awakened? It is hard to be positive when adults do crazy things.

      Reply
    2. I so much love the ending of your message. a lot of those places our citizens run to are below our par. But the love they have for their country is what makes us to run there thinking about security

      Reply
    3. I’m tempted to say Shutup, but I’d school you.
      In the beginning of this administration, when companies felt unease in doing business and started leaving Nigeria by their numbers, the Buhari goons trended that those companies were the ones looting and corrupt and that they were leaving because Buhari had locked every means for them to loot.
      Our Borders which were major Business routes and contributors to fix were locked for years, and this seemed sensible to Buhari and Emefiele.
      There was so much hoarding of dollar by the CBN, giving assess to certain people to buy at far lower prices than necessary too.

      All of this FX issue was caused by Buhari and his leadership.

      Reply
      1. You are correct. Let’s call a spade a spade. The Buhari Administration is the cause of the FX issues. It’s policies have only caused more problems.

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        1. I’m sorry, I can only say to you and the person you’re responding to, to get financial education. I’m tempted to say the blind is leading the blind. Does import provide more fx for a nation? Cuz I heard you mention closure of borders. Yes it had its consequences, but nothing related to fx shortage. I have been on the financial space for almost 2 decades so I have quite some knowledge of how it works. It’s our fellow Nigerians that are working against our currency, not buhari or emiefiele.

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    4. As long as there are domiciliary accounts in Nigeria, there will always be dollar shortage and depreciation of the naira.
      Naira is our legal tender thus should be the only money legally kept in our banks.
      Foreign currency accounts MUST be prohibited for us to move forward.
      We are running after foreign currencies thereby debilitating our currency in the high foreign currency demand.
      If the Central bank allows it, they have failed us all

      Reply
      1. What shortages? The monies at the bank remain with the bank and are free to circulate. Just like cash (Naira) deposits are available for circulation, as only a fraction is demanded by the population. Read.

        Reply
  2. Don’t mention Buhari, every problems of Nigeria is cause by CB N Governors, infact, SOLUDO is the best and mesiah, EMEIFELE is just there to loot money and nothing else, he has only IBOs money mentality not economis creativity, imagine him of his useless policies not to transfer dollars into domiciliary accont nor receive dollars into Nigeria banks, he is there to destroy Nigeria, he forgets that there are some students who are studying abroad, or family and friends who based abroad and send money to help their people and EMEIFELE said no, well he will come and go with some Nigerians money abroad in suitcase in the name CBN GOVERNOR BUT WILL Deceive others, Mr President take note,

    Reply
  3. THE PROBLEM IS THREE-PRONG. HERE, IT’S TAKING THREE TO TANGO. THE GOVERNMENT, THE CBN AND THE “ELITE”…
    -> THE GOVT:- BY IT’S POLICIES THAT HAS AFFECTED FX TRXs, DISCOURAGING BUSINESSES & COMPANIES. HER POLICIES ALSO CAUSE OUTFLOW OF FX, ETC.
    -> THE CBN:- FOR NOT BEING COURAGEOUS IN IMPLEMENTING NECESSARY POLICIES THAT WILL REVERT THIS TREND.
    -> THE ELITES:- OUR HUNGER/DESIRE FOR EVERYTHING FOREIGN (EVEN TOOTHPICK!) IS HIKING UP THE DEMAND FOR FX. JUST IMAGINE IF WE PRODUCE MOST OF WHAT WE CONSUME, & CONSUME WHAT WE’RE PRODUCE.
    WE ALL DESIRE A BETTER ECONOMY, BUT WON’T WANT TO DO WHAT’S NECESSARY TO GET THERE (THE GOVT, CBN & ELITES ALIKE).
    PS: I REFER TO THE ELITE BECAUSE WETIN CONCERN VILLAGE PEOPLE WITH DOLLAR?

    Reply
  4. For any economy to thrive, local business environment MUST be favourable to attract investment from abroad and within.

    Imagine placing ban on importation of certain items into Nigeria and there’s no sufficient alternative plans to close the consumption gaps.

    Govt and CBN must ensure that public and financial policies are geared towards revitalizing our internal economic structures

    Our local manufacturing companies are experiencing tough times in terms of bad roads, security challenges, high cost of operations, harsh govt policies on businesses etc.

    Recent information I got revealed that cost of some materials manufactured locally are higher, compared to buying from abroad, which ought not to be so.

    This is one of the contributors to high demand for foreign exchange.

    Current govt is not properly guided in policy making and enforcement. THIS IS THE ORIGIN OF OUR DECLINING ECONOMY.

    I understand we all have a role to play but Govt determines what happens through her policies

    Reply
  5. Why would there be such a speculation by my people in the first place? How will conversion of foreign currency in individual’s private account to naira help the economic downfall of the country? I just wonder how we reason. Infact, it will be illegal to think of such atrocious act, let alone carry it out. Please let our thoughts be guided. Nigeria has all that it takes to be great again, but lacks governance.

    Reply

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