CBN, FG Deny Reported Plan To Convert Domiciliary Accounts Holdings to Naira

CBN, FG Deny Reported Plan To Convert Domiciliary Accounts Holdings to Naira

  • The Nigerian government and the CBN have reacted to reports that it plans to convert funds in domiciliary accounts to Naira
  • It is believed that over $30 billion is lying in Access, GTB, UBA, Zenith, and other Nigerian bank accounts
  • The move the report claims will help the Naira recover in the forex market and boost forex supply in Nigeria journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

President Bola Tinubu's administration has reacted angrily to reports that it is considering converting foreign currencies to Naira in citizens' domiciliary accounts.

Naira to dollar
President Bola Tinubu's government targets domiciliary accounts Photo credit: officialABAT
Source: Facebook

The report, which the Punch Newspaper published, is in the pipeline to aid in recovering the Naira.

The Punch noted that a new policy is being considered wherein the government may mandate the conversion of idle foreign currencies in the domiciliary accounts of individuals and corporate organizations into Naira.

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A source quoted in the report said the problem of forex scarcity and the naira fall was an elite issue.

Additionally, it was said that the Central Bank of Nigeria(CBN) would determine the exchange rate for this conversion.

CBN reacts contacted the acting director of corporate communications at the CBN, Hakama Ali, to clarify the report.

She replied:

"Fake news"

Shortly after, CBN took to its official X account to debunk the reports, accompanied by a screenshot of the Punch report, which reads:

"No plans to convert $30bn domiciliary deposits to naira. This news is fake!"

FG reacts to the reports

Also, the coordinating Minister of Economy, Wale Edun, said in a statement on Saturday, February 3, 2024, that such reports were false and misleading.

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He vowed the Federal Government would take up the "breach" in due course, the Nation reports.

His statement reads:

“There is no iota of truth in the claims of Punch Newspaper that the Federal Government plans to convert foreign exchange in depositors’ domiciliary accounts to naira.
“The publication of such falsehood at a time when the government is working to restore economic stability and confidence in the national currency is tantamount to economic sabotage.
“This report in the Punch Newspaper violates the standards of responsible journalism and it is a breach which will no doubt be taken up by the appropriate authorities in due course.
"For the avoidance of doubt, I emphasize that depositors’ foreign currency in their domiciliary accounts will not be converted to naira.”

FG addresses the Naira the dollar exchange rate earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the Naira would strengthen in value in the foreign exchange market in 2024.

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Speaking in an interview with Channels TV on Tuesday, December 26, 2023, Akabueze said this would be possible as the country expects an increase in dollar supply.

He noted that the Tinubu-led government expects the reforms initiated in 2023 to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.


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