Bank Directors Association of Nigeria has expressed support for a directive by the Central Bank of Nigeria asking commercial banks to stop “hoarding’’ foreign currencies.

The CBN had last week expressed concerns over the escalating foreign currency exposure of banks through their Net Open Positions.

Consequently, it issued a circular titled, ‘Harmonisation of Reporting Requirements on Foreign Currency Exposures of Banks,’ directing lenders to sell all excess dollar stocks to their customers.


In the circular, the CBN stipulated that the NOP limit for overall foreign currency assets and liabilities should not exceed 20 per cent short or zero per cent long of shareholders’ funds.


Reacting on Monday, BDAN said it was fully aware of the CBN circulars which it said were aimed at fortifying the nation’s financial system.


“The association wholeheartedly supports these comprehensive measures which underscore the commitment of the CBN to ensuring the stability and resilience of the banking sector,” the association said in a statement by its Chairman, Board of Directors, Mustafa Chike-Obi, on Monday.

Following the CBN directive, dollar supply rose by 180 per cent to $440m at the official foreign exchange market (NAFEM).

Reacting, BDAN said, “This directive, along with other prudential requirements outlined in the circular, plays a critical role in ensuring the effective management of foreign currency exposures”.

According to the central bank circular, the CBN aims to mitigate potential losses that could pose significant systemic challenges.

These regulatory measures, it was said, “underscore a strategic initiative aimed at bolstering risk management, transparency, and accountability within the financial industry.

“The Bank Directors Association of Nigeria acknowledges and commends the Central Bank for its proactive stance in safeguarding the interests of depositors, investors, and the overall economic well-being of Nigeria.”

BDAN disclosed that it viewed the requirements as a positive step towards creating a resilient financial landscape and preventing adverse effects on the banking sector.

The statement further reads in part, “The association applauds the CBN’s commitment to proactive regulation and remains supportive of initiatives that contribute to the stability and prosperity of the Nigerian economy.

“Therefore, the association encourages all banks to fully comply with the new directives and actively participate in the implementation process to achieve full compliance.

“Furthermore, the association acknowledges the meticulous work undertaken by the Central Bank of Nigeria in consulting stakeholders and experts to ensure a balanced and effective regulatory approach.

“As advocates for responsible banking and ethical conduct, BDAN believes that these guidelines will contribute significantly to the long-term sustainability, growth, as well as the overall efficiency, transparency, and stability of the banking sector, ultimately contributing to the nation’s economic development.”

While pledging its support for the apex bank, BDAN said the steps being taken were in the right direction.

“BDAN pledges its continuous collaboration with the Central Bank of Nigeria and other stakeholders to foster a dynamic and resilient financial ecosystem that serves the interests of all Nigerians.

“We believe that these steps are in the right direction to improve the effectiveness of the Banking system and we are fully in support,” it submitted.

Nigeria’s GDP is expected to increase by 3.7% in 2025, according to World Bank predictions.


The largest economy in Africa is expected to grow by 3.3%, up from a projected 2.9% in 2023, according to the World Bank’s most recent study, “Global Economic Prospect: Subdued Growth, Multiple Challenges.”

The report stated, “Growth in Nigeria is projected at 3.3 per cent this year and 3.7 percent in 2025—up 0.3 and 0.6 percentage points, respectively, since June—as macro-fiscal reforms gradually bear fruit.



“The baseline forecast implies that per capita income will reach its pre-pandemic level only in 2025.”


The momentum, according to the Washington-based bank, is due to the present macro-fiscal reforms being gradually implemented.

BrandSpur Nigeria recalls that President Bola Tinubu has implemented several reforms since taking office, with an emphasis on infrastructure development, manufacturing, and technology. These reforms include the elimination of fuel subsidies and the harmonization of foreign exchange rates.

The global bank stated that commerce, services, construction, and agriculture will propel the nation’s economic growth.

The 2023 State of Global Food and Nutrition Security report claims there has been a 133% increase in food insecurity among Nigerians in just three years. Between 2020 and 2022, the number increased from 63.8 million in 2014 to 148.7 million in 2022.

“Inflation should gradually ease as the effects of last year’s exchange rate reforms and removal of fuel subsidies fade. These structural reforms are expected to boost fiscal revenue over the forecast period,” the World Bank declared.

It admitted that the disruptive currency demonetisation policy—which involves replacing outdated, high-denomination naira notes—caused the Nigerian economy to soften to an anticipated 2.9% in 2023.

The report said, “Growth in the region’s three largest economies—Nigeria, South Africa, and Angola—slowed to an average of 1.8 percent last year, holding back the region’s overall growth.

“In the region’s other countries, growth softened to 3.9 per cent, partly reflecting a sharp decline in metal exporters’ growth alongside lower global metal prices. Moreover, intense and prolonged conflicts hampered growth in several countries.

“More broadly, post-pandemic recoveries were slowed by weakening external demand and domestic policy tightening to address persistent inflation.”

The National Bureau of Statistics estimates that Nigeria’s GDP grew at a rate of 2.54% to N60.66 trillion as of Q3 of 2023.

The growth rate, according to the agency, exceeded both the 2.51 percent growth in the second quarter of 2023 and the 2.25 percent growth noted in Q3 of 2022.

On the other hand, there were worries that Nigeria’s growth prospects may continue to be jeopardized by factors like growing public debt, ongoing inflation, high living expenses, and a poor business environment.

In December 2023, the nation saw inflation reaching a 21-year high of 28.92 percent.

Data from the Debt Management Office show that in the third quarter of 2023, the public debt increased to N87.91 trillion.

With a high public debt load and a small domestic tax base in 2023, African nations’ fiscal positions would only get worse, according to the United Nations’ “World Economic Situation and Prospects 2024” study.

“Efforts to increase in-country oil refining capacity would likely reduce domestic fuel costs in 2024 and beyond. Energy subsidy reforms in Nigeria, Angola, and Gambia, as well as tax hikes in Kenya, Ghana, and South Africa, aim to provide the government with some relief from tight fiscal spaces,” the UN said.

Following applicable tax legislation, the Lagos State Internal Revenue Service (LIRS) has communicated a reminder to all Employers of Labour to submit their annual tax returns on or before the stipulated deadline of January 31, 2024.


Mr. Ayodele Subair, the Executive Chairman of LIRS, conveyed this in an official statement released by the agency. Subair emphasized that employers of labour with businesses located within Lagos State must adhere to the deadline, as failure to comply will result in penalties and other statutory sanctions outlined in section 81(3) of the Personal Income Tax (Amendment) Act 2011.

Mr. Subair reiterated that the exclusive platform for filing annual income tax returns in Lagos State is the LIRS e-Tax portal: https://etax.lirs.net, as manual filing is no longer permissible. He urged businesses and employers to leverage the e-Tax portal for filing, citing its user-friendly, convenient, and secure nature.



“The e-Tax portal is designed for the convenience of taxpayers, making tax transactions easily accessible from the comfort of homes and offices,” noted Subair.

To facilitate compliance and address any filing-related concerns, LIRS has designated staff at its various offices to assist taxpayers in utilizing the e-Tax portal.