CBN plans to use public shaming of customers to protect forex policy

The Central Bank of Nigeria (CBN) has directed banks to publicly publish the names and Bank Verification Numbers (BVN) of customers fraudulently buying foreign exchange.

The apex bank said in a circular to banks on Tuesday, August 31, 2021 that many customers are using fake documents to obtain personal travel allowance (PTA), and business travel allowance (BTA).

Other customers are accused of cancelling their flight tickets once the forex had been obtained from the banks.

"All banks are hereby directed to publish on their websites the names and BVN of defaulting customers who present fake travel documents or cancel their tickets and fail to return the purchased PTA/BTA within two (weeks) as stipulated in the customer declaration form signed by them," CBN's Director, Banking Supervision Department, Haruna Mustafa, said in the circular.

The CBN last month discontinued the sale of forex to Bureau De Change (BDC) operators for allegedly sabotaging its goal to safeguard the naira's value.

CBN governor, Godwin Emefiele, said the bank was finding it more difficult to meet its mandate of maintaining Nigeria's forex reserve due to the greed and corruption of the operators.

The weekly allocations to the operators were then channeled to commercial banks who have been directed to continue to disburse forex to customers as stipulated by the law.