Forex: CBN re-admits UBA as others face sanctions

The Central Bank of Nigeria (CBN) has re-admitted United Bank for Africa (UBA) into the Foreign Exchange Market.

The apex bank also carried out its threat and placed forex restriction order on Diamond Bank Plc, First City Monument Bank Plc (FCMB) and others. The development has sent the stocks of the affected banks crashing further down.

Reportedly, the shareholders of the banks yesterday lost N8.1bn as their shares took a beating.

However, at the end of the day’s transactions, shareholders of seven other Banks sanctioned by the CBN for not remitting Nigerian National Petroleum Corporation (NNPC) funds in their vaults lost N8.1billion.

The Banks are Diamond Bank Plc, FCMB, United Bank for Africa (UBA) Plc, Sterling Bank Plc, Skye Bank Plc, Fidelity Bank Plc and First Bank of Nigeria.

Mostly affected are shareholders of Diamond Bank Plc.  Investors who stake their earnings on the Bank’s stocks as at close of transactions yesterday lost 8.94 per cent of their investment or N2.5 Billion, followed by FCMB (N1.19 billion or five per cent).

Also, Investors lost N863 million, N350 million, N326 million and N289 million in Sterling Bank, Skye Bank, First Bank and Fidelity Bank respectively.

On percentage assessment , UBA and Skye Bank Plc declined by 1.55 per cent and 1.54 per cent to N 4.46 and N0.64 from N4.53 and N0.65 when the market opened for transactions for the day.

In a related development, value of Fidelity Bank Plc declined by 0.99 per cent or N0.01 from N1.01 to N1.00 while First Bank of Nigeria share price dropped by 0.32 per cent or N0.01 to N3.17 from N3.16 when the market commenced transactions on Wednesday.

Two of the Banks, Heritage and Keystone Banks are not listed on the Exchange.

Meanwhile, UBA in a statement said: “we are pleased to inform our valued customers, stakeholders and business partners as well as the general public that the CBN has re-admitted us into the Foreign Exchange Market following our remittance of all NNPC/NLNG dollar deposits”

The CBN had, last Tuesday, barred nine banks from trading in forex for failing to return a total of $2.334billion of Nigerian National Petroleum Corporation (NNPC)/ Nigerian Liquefied Natural Gas, NLNG, Company dollar deposits to the Federal Government’s Treasury Single Account (TSA) domiciled with it in accordance with last year’s directive of the Presidency.

The affected banks are the United Bank for Africa (UBA) Plc – $530 million, First Bank of Nigeria (FBN) Ltd. – $469 million, Diamond Bank Plc – $287 million, Sterling Bank Plc – $269 million, Skye Bank Plc -$221 million, Fidelity Bank Plc – $209 million, Keystone Bank Ltd. – $139 million, First City Monument Bank (FCMB) Ltd. – $125 million, and Heritage Bank Limited – $85.5 million.