The Central Bank of Nigeria (CBN) has directed the nation’s Deposit Money Banks to pledge N1 billion worth of government securities in their portfolio to participate in the Over-The-Counter (OTC) trade settlement.
According to the apex bank, the move was part of efforts to enhance efficiency in trading and post trading activities, as well as build confidence in the financial markets.In a statement from the bank, signed by the Director of Financial Markets Department, Dr. Alvan Ikoku, the pledge is mandatory for all the banks that wish to participate, with effect from today.
However, failure to make the provision or top up impaired provision when required will also result to exclusion of the affected bank from the market activity.Meanwhile, the Deputy Governor in charge of Operations at CBN, Adebayo Adelabu, has resigned his appointment, with effect from July 15 .
A statement signed by the Acting Director of Corporate Communications Department, Isaac Okorafor, noted that President Muhammadu Buhari has already accepted the resignation.Adelabu formally assumed duty as deputy governor on April 9, 2014 and was at different times in charge of financial system stability, corporate services, and operations, before his voluntary disengagement.
