The Central Bank of Nigeria, CBN has on Friday fined First Bank of Nigeria Limited (FirstBank) and United Bank for Africa (UBA) Plc the sum of N4.819 billion for failing to comply with the federal government’s directive on the remittance of government revenue to the treasury single account (TSA).
According to This Day publication, the sanction which was disclosed in a circular issued by the Apex Bank, read, the CBN imposed a penalty of N1,877,409,905.12 on FirstBank, UBA was fined N2,942,189,651.45 for its failure to comply with the federal government’s policy.
An industry source, who craved anonymity revealed that FirstBank concealed N37,548,198,102.41 belonging to the Nigerian National Petroleum Corporation’s (NNPC) instead of remitting it to the TSA as directed. On the other hand, UBA concealed N58,843,793,029.05 of NNPC funds, which attracted the penalty.
The source explained that the penalty was the equivalent of five per cent of the funds they failed to remit respectively.
“The accounts of both banks with the CBN have been debited for the unremitted amounts and the penalties,” she added.