Mary Johnson
Thu, Jul 27, 2023 12:05 AM

Central Bank of Nigeria Lifts Account Restrictions on 440 Individuals and Companies

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Central Bank of Nigeria Lifts Account Restrictions on 440 Individuals and Companies
The Central Bank of Nigeria (CBN) has directed banks to lift the post-no-debit restriction on the accounts of 440 individuals and companies. This move follows a similar action in 2021 when the accounts of 18 companies were frozen. The CBN did not provide a specific reason for lifting the restrictions, leading to speculation about their regulatory approach. In other news, the CBN has announced a modest increase in monetary policy rates in an effort to curb inflation.

The Central Bank of Nigeria (CBN) has directed banks to lift the post-no-debit restriction placed on the accounts of 440 individuals and companies. The directive, signed by A.M. Barau on behalf of the CBN director of banking supervision, was issued on Tuesday, July 25, 2023.

The affected companies include Bamboo Systems Technology Limited, Escale Oil & Gas Limited, Rise Vest Technologies Limited, Chaka Technologies Limited, abokiFX Limited, Nairabet International, Northwood Energy Services, and Proport Marine Limited.

Post-no-debit restrictions typically block all debit transactions, including ATM withdrawals and checks, on these accounts. However, inflows are still permitted.

This action comes after a similar instruction in 2021 when the accounts of 18 companies were frozen by the CBN. These companies represented various sectors including bureaux de change, construction firms, investment companies, laundering services, and property companies. All 18 companies have since had their bank accounts unfrozen, but the reason behind the initial restrictions remains unclear.

The recent directive from the CBN signifies its ongoing efforts to regulate and ensure compliance within Nigeria's banking sector. However, the lack of explicit reasoning behind lifting the restrictions has left room for speculation about the regulatory approach of the CBN.

In other news, the Central Bank of Nigeria's Monetary Policy Committee (MPC) has announced a modest increase in monetary policy rates in an attempt to curb the nation's escalating inflation.

The decision to raise the Monetary Policy Rates to 18.75 percent was unveiled by the Acting Governor of the CBN, Mr. Folashodun Shonubi, during a press briefing on July 25, 2023. This comes after the previous MPC meeting where the interest rate was raised to 18.5 percent from 18 percent.

The increase in the MPR aims to address the sustained rise in inflation, which reached 22.79 percent in June. By taking a tightening stance on the economy, the CBN hopes to stabilize inflation and ensure the overall stability of Nigeria's economy.

While the impact of these measures on the broader economy and Nigerian households is yet to be seen, today's rate hike underscores the CBN's commitment to tackle inflationary pressures head-on.

It is important to keep a close watch on the regulatory actions and monetary policy decisions of the CBN as they play a critical role in shaping Nigeria's economic landscape and ensuring financial stability.

Source of content: OOO News 2023-07-26 News

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