Central Bank of Nigeria has banned the use of foreign currency-denominated collaterals for naira loans

NIGERIA — The Central Bank of Nigeria (CBN) has banned the use of foreign currency- denominated collaterals for naira loans. This was contained in a circular dated April 8, 2024 and directed to all banks by CBN’s Acting Director of Banking Supervision Department, Adetona Adedeji. The apex bank official listed two exceptions to the rule as foreign currency collateral which are Eurobonds issued by the Federal Government or guarantees of foreign banks, including Standby Letters of Credit... channelstv.com