Charges have emerged that certain banks are redirecting foreign trade from authentic channels and piping them into the unofficial foreign trade market.
The acting CBN governor, Folashodun Shonubi, conveyed these significant comments during a talk named “Diaspora Remittances and Nigerian Economic Development” in Abuja. Shonubi featured the desperation of upholding severe measures to battle unlawful remittances, guaranteeing that funds are guided through appropriate avenues to support economic growth.
“We will not hesitate to expose and condemn the commercial banks engaged in such illicit practices,” Shonubi declared unequivocally.
Moreover, Shonubi explained the shortcomings of the existing remittance system. He pointed out that the cost of transferring money from the diaspora to Sub-Saharan Africa stands at approximately 9 percent of every $100, a figure he deemed excessively high and unparalleled globally.
Regardless of the difficulties presented by informal channels, Nigeria has still figured out how to draw in a significant measure of remittances, with a faltering $16.7 billion influx. Nonetheless, a critical piece of these funds bypasses the official trade market.
“We are vigorously striving to incentivise individuals to route their funds through formal channels, steering clear of the convoluted informal avenues,” Shonubi stressed.