Regulatory Alerts2024-04-08 | BSD/DIR/PUB/LAB/017/004Added · Updated
Letter to all Banks- The Use of Foreign- Currency Denominated Collaterals for Naira Loans
The Central Bank of Nigeria has prohibited the use of foreign currency-denominated collaterals for Naira loans, with a few exceptions. Banks have 90 days to wind down existing loans secured with dollar-denominated collaterals or face regulatory sanctions and a higher risk weight for Capital Adequacy Ratio computation. This directive aims to regulate the use of foreign currency as collateral for loans in Nigeria.
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