Fidelity Bank sent emails to their customers below, in response to CBN's sanction and barring from FX Market:
Clarification on Temporary Suspension from FX Market
Dear CUSTOMER NAME,
You might have read about the recent developments in the industry where the Central Bank of Nigeria (CBN) announced a temporary suspension of nine commercial banks from the foreign exchange market due to the non-remittance of NNPC/NLNG deposits.
We will like to clarify that these deposits were duly reported to the CBN by Fidelity Bank in line with the extant TSA requirements contrary to the erroneous view in certain media reports that the funds were concealed from the regulators.
At the commencement of the Treasury Single Account (TSA) in 2015, Fidelity bank advised NNPC and the regulators with a schedule of repayment for the NNPC/NLNG Dividend dollar deposits.
Fidelity bank has repaid over $288m of these funds in line with the advised repayment schedule.
Please note that you can continue to operate your domiciliary account with Fidelity and this development will not affect your deposits/loans (local and foreign currency), remittances, transactional services and electronic banking services.
Although the market condition remains quite challenging, we will continue to honour our obligations and operate with the highest level of corporate governance.
In the interim we are engaging with the other 8 banks involved, stakeholders and the regulators to resolve this issue quickly and ensure our return to the FX market.
Management
Fidelity Bank Plc.
Similarly, First City Monument Bank (FCMB) has officially responded to the sanction imposed by the Central Bank of Nigeria (CBN) over Treasury Single Account (TSA) Funds. The statement issued by the bank reads:
So, who is right or wrong? For the sake of business, we hope it all gets resolved soon.“Yesterday, the Central Bank of Nigeria announced a temporary suspension of FCMB along with eight other commercial banks from access to the foreign exchange market.
This suspension is based on the Treasury Single Account Directive, which stops banks from holding funds on behalf of government entities and instead, effect daily remittances to the CBN. For our bank, this scenario is based on our non-payment/transfer of the remaining $125m NNPC fund with us to TSA.
As a financial institution with strong corporate governance rules, we have always fully disclosed the outstanding TSA funds in our books and have continued to work assiduously to fulfill our outstanding obligations.
The members of the NNPC Management Team have been kept fully in the picture on the funds. This development is really because of lack of foreign exchange availability and the prevailing fall in oil prices rather than concealment or willful non-compliance by FCMB. It is actually a widespread industry issue.
In conjunction with the other institutions, we are working closely with the Central Bank of Nigeria for an amicable and mutually beneficial resolution of this scenario. As an institution, our fundamentals remain strong, our franchise is still growing and we remain firmly committed to our professional values”.
