The Central Bank of Nigeria has reiterated that banks operating in the country cannot use their foreign exchange revaluation gains to pay dividends or meet their operational expenses.
In a circular from the apex bank signed by the acting Director, the Banking Supervision Department, Adetona Adedeji, banks were warned against such a move.
“Further to our letter dated September 1, 2023, referenced BSD/DIR/CON/LAB/16/020 on the above subject, the Central Bank of Nigeria wishes to reiterate that banks are required to exercise utmost prudence and set aside FCY revaluation gains as a counter-cyclical buffer to cushion any adverse movements in the FX rate.
“In this regard, banks shall not utilise such FX revaluation gains to pay dividends or meet operating expenses.”
CBN insists banks can’t pay dividends from FX revaluation gains.
