CBN ban use of foreign currency as collateral for naira loans

The Central Bank of Nigeria (CBN) has issued a directive to banks, instructing them to cease accepting foreign currency as collateral for loans denominated in naira.

This mandate was conveyed through a circular published on the CBN’s website on Monday.

The bank stated that it has noted the practice of customers pledging foreign currencies as security for naira loans and has implemented an immediate prohibition on this practice.