The Central Bank of Nigeria (CBN) has ordered banks across the nation to block bank accounts of 38 companies over Foreign Exchange, Forex infractions.
Forex infraction is the breaking of law, rule, or agreement by the financial governing body. So any company that is charged with an infraction of the financial governing body will usually have to pay a penalty.
iBrandTV gathered that, prominent among the companies affected is Premier Lotto owned by Adebutu Kessington, a Nigerian businessman popularly known as “Baba Ijebu.”
Some of the offences being alleged by CBN include; forex infractions, moving forex abroad without the required authorisation and “economic sabotage.”
The accounts of these companies have been blocked, however, money can be deposited into the accounts.
Some of the affected companies are Premier Lotto Limited, 3D Scanners Bureau De Change Limited, Blue Wall Nigeria Limited, JNFX International Limited, Northline Limited.
Others are V Gaming Limited, R&S Lotto Limited, TM Gaming Networks Limited, Escale Oil and Gas Limited, Barkoli Trading Company Limited, and Godoni Enterprises Limited.
Meanwhile, available sources disclosed that one of the gaming companies moved $420m abroad under the guise of purchasing software but the funds were later traced to the foreign accounts of some of the directors of the company.
“The forex was sourced from the black market, thereby putting pressure on the exchange rate.
“The gaming companies are awash with naira which sit in their bank accounts, so they devised a way of moving the funds abroad,” a source said.
In a September 4 memo signed by the Director of Banking Supervision, Bello Hassan, read, “You are hereby required to place the under listed accounts on post-no-debit with immediate effect and revert with the account names, numbers, currencies and balances of all accounts placed on PND.”
A post-no-debit means that all debit transactions, including ATMs and cheques, on the accounts have been blocked but money can be deposited into the accounts.
The apex bank said only the listed companies should be placed on PND adding that all related accounts be excluded.