The Central Bank of Nigeria has decided to stop accepting foreign currencies as collateral for loans issued in naira.
In a circular issued today, April 8, the apex bank directed all Nigerian banks to discontinue this practice, except for Eurobonds issued by the Federal Government of Nigeria or guarantees of foreign banks, including Standby Letters of Credit.
Loans currently secured with dollar-denominated collaterals other than these exceptions must be wound down within 90 days, with failure to comply resulting in sanctions.
