The Central Bank of Nigeria has ordered that Banks should not pay dividends or meet operating expenses from FX revaluation gains.
In a circular tilted “Impact of Recent FX Reforms: Prudential Guidance to the Banking Sector” available on the website of CBN, the apex bank stated thus:
Further to our letter dated September 11, 2023, referenced BSD/DIR/CON/LAB/16/020 on the above subject, the CBN wishes to reiterate that banks are required to exercise utmost prudence and set aside Foreign Currency revaluation gains as a counter-cyclical buffer to cushion any adverse movement in the FX rate.
In this regard, banks shall not utilize such FX revaluation gains to pay dividends or meet operating expenses.