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| Godwin Emefiele (CBN Governor) |
In the latest development, United Bank for Africa
Plc, the lender operating in 19 countries on the continent, was penalised
by the Central Bank of Nigeria for delays in the transferring of deposits of
government institutions to its account with the regulator.
The Lagos-based bank received a penalty of 2.9 billion naira
($15 million) or 5% of a balance of the deposits of 58.8 billion naira as of
Oct. 15, UBA said Friday in a statement posted on the Nigerian Stock Exchange
website. The bank’s management are in discussion with the central bank over the
penalty, according to the statement.
President Muhammadu Buhari and central bank Governor Godwin Emefiele
gave lenders until September 15 to move funds for state-owned bodies to the
Treasury Single Account at the central bank in a move designed to clamp down on
corruption and financial waste in the public sector. Interbank rates jumped
before the deadline as banks sought cash.
Fewer than half the deposits had been transferred to the
central bank a week later, according to Chibuike Uche, a member of the Monetary
Policy Committee.
UBA is the fourth major company to run foul of Nigerian
regulators this week. First Bank of Nigeria Ltd., Nigeria’s largest lender
by assets, on Thursday was also fined by the central bank for the same offence
as UBA.
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