The Central Bank of Nigeria (CBN) has instructed all banks operating in the country to discontinue the practice of accepting foreign currencies as security for loans denominated in Nigerian naira.
This directive was communicated through a circular published on the CBN’s website on Monday. The apex bank expressed concern over the observed trend of customers using foreign currencies as collateral for naira loans and has therefore imposed an immediate prohibition on this practice. Further information will be provided at a later time.
