CBN

CBN Crackdown: No More Dividends from FX Gains in 2024!

Find out why the Central Bank of Nigeria is putting a stop to banks using Forex revaluation gains for dividends and expenses. #CBN #Forex #Dividends

The Central Bank of Nigeria (CBN) is taking a firm stand against banks using their foreign exchange (FX) revaluation gains to pay dividends. In a recent directive, the CBN has reiterated its position, instructing banks not to utilize FX gains for dividend payments or operating expenses starting in 2024. This move aims to curb inflation and prevent corruption within the banking sector.

Furthermore, the CBN is actively working to eliminate Ways and Means advances, aligning with the regulatory guidelines outlined in the CBN Act. By discontinuing these advances, the fiscal authorities are taking concrete steps to promote financial transparency and accountability, which are essential for sustainable economic growth.

As the dividend payment season approaches, banks are under strict instructions from the CBN to adhere to the recent foreign exchange policy reforms. This directive reinforces the CBN's commitment to ensuring that banks operate within the set guidelines to maintain financial stability and prevent misuse of FX revaluation gains.

In a bid to uphold financial integrity, the CBN has warned banks against using FX revaluation gains for dividends or other expenses. This proactive measure aims to uphold the regulatory standards and protect the financial interests of shareholders and the stability of the banking sector.

Did you know that the CBN's directive on curbing corruption by discontinuing Ways and Means advances is a significant step towards promoting fiscal discipline and accountability? Additionally, the strict adherence to foreign exchange policy reforms by banks highlights the importance of transparency and regulatory compliance in the financial sector.