The Central Bank of Nigeria (CBN) has banned Baba Ijebu and 37 other companies from withdrawing from their accounts. The accounts belonging to these companies were placed on post-no-debit, which will prevent the companies from being able to withdraw.
The CBN directed banks to place the post-no-debit on accounts of Premier Lotto Limited, popularly known as Baba Ijebu, 3D Scanners Bureau De Change Limited, Blue Wall Nigeria Limited, JNFX International Limited and Northline Limited.
Others on the list include SV Gaming Limited, R&S Lotto Limited, TM Gaming Networks Limited, Escale Oil and Gas Limited, Barkoli Trading Company Limited, Godoni Enterprises Limited.
In a statement signed by CBN’s Director of Banking Supervision, Bello Hassan, CBN told banks, “You are hereby required to place the under listed accounts on post-no-debit with immediate effect and revert with the account names, numbers, currencies and balances of all accounts placed on PND”.
Why The Accounts Were Bannex From Debiting
The directive by CBN enables the companies deposit into the frozen accounts, but they would be unable to debit from the accounts. The CBN accused the companies of forex infractions, which was sabotaging the economy.
The company list which involves betting companies, bureau de change companies and some logistics companies, were said to have been involved in capital flight, moving forex abroad without the required authorisation, by pretending to need forex to purchase goods abroad.
According to a source, $420 million was moved abroad by one of the gaming companies. The company obtained forex in disguise to purchase software, however, the money was traced to some directors of the company’s foreign accounts.
“The forex was sourced from the black market, thereby putting pressure on the exchange rate. The gaming companies are awash with naira which sit in their bank accounts, so they devised a way of moving the funds abroad,” a source told TheCable.