…As Reps flay CBN over forex policy 

By Emman Ovuakporie, Michael Eboh & Johnbosco Agbakwuru

Abuja—The Central Bank of Nigeria, CBN, yesterday, threatened to block accounts used by illegal Money Transfer Operators, IMTO.

This is even as the House of Representatives Committee on Diaspora Affairs yesterday tongue-lashed the Central Bank of Nigeria, CBN, over its foreign exchange, Forex, policy which had allegedly strangulated the business environment in the country.

The CBN also warned Nigerians that they stood the risk of losing their hard-earned money, if they continued to patronise the illegal operators.

According to a statement by the CBN’s Acting Director, Corporate Communications, Mr. Isaac Okorafor, the illegal money transfer operators have been using proceeds from remittances to fund the parallel market.

He said: “The attention of the CBN has been drawn to the increasing patronage of illegal Money Transfer Operators by Nigerians in the Diaspora for the purpose of home remittances.

“These unscrupulous operators, who lure unsuspecting customers with ridiculous exchange rate, use Naira accounts opened in local banks ostensibly for legal business to pay out the proceeds to the beneficiaries while channeling the foreign currencies to fund the parallel market.

“This practice has led to non-reporting of such transactions to relevant authorities thereby, undermining effective surveillance of the sector.”