$5 Billion idle funds in Bank vaults

The Central Bank of Nigeria (CBN) directed banks a few weeks ago to stop accepting dollar cash deposits in a bid to curb the menace of money laundering, as the economy has been found to be awash with illicit dollars found to be laundered through the banking system. The CBN noted the report by the Global Financial Integrity Group that about $15.7 billion of illicit funds go through the Nigerian financial system yearly. However, to avert an imminent cash crunch, the monetary authorities need to explore creative ways to supplement the directive and help reflate the economy. The banking industry is complaining of excess dollar cash up to US$5 billion (approximately N1 trillion) either stuck in some people’s hands or lying idle in bank vaults as a result of a foreign exchange directive. This idle money is sufficient to feed 20 million households in the low income bracket for a year, and will provide over 4 million jobs for graduates if invested in the economy. Legitimate foreign exchange deposits should be allowed with proper documentation, while illegitimate foreign assets should be pursued,recovered and those found culpable prosecuted to serve as a deterrent to others.