CBN allows banks to pay banned betting & gaming companies

The banned betting and  gaming companies have received a temporary relief as they have been allowed to access their accounts for limited purposes.

This is sequel to the instructions from the Central Bank of Nigeriawhich gave the commercial banks the mandate to allow  betting and gaming companies suspended earlier in the month  to honour withdrawals from their accounts .

This would allow them to  pay for winnings, salaries and other overhead expenses.  

However, banks pleaded with the apex banks to allow the betting and gaming companies to meet urgent operational requirements In  the letter addressed to the banks the Central of Nigeria claimed its decision  was based pressures for clemency from both the banks and the betting companies who  allegedly  engaged in foreign exchange infractions. According to the CBN the affected companies explained that the mandate would give them the opportunity to carry their operations and settle their customers and workers .””:””You will recall at the meeting held  by Governor of the Central of Bank with your bank and stakeholders of seven betting and gaming   companies on September

11,you pleaded for clemency processing some transactions in violation the  extant foreign exchange regulations .Similarly,  some betting and gaming companies  entreated the CBN governor to allow them to discharge their operational  expenses ” .Consequently,  the management of CBN has magnanimously granted your bank the approval to honour instruments presented by the companies provided they are for payment of winnings ,salaries and other operational expenses ”

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Despite the partial lifting on the ban, the CBN still maintained a “Post No Debit restriction on the account and ordered that “no other transactions should be processed for any of the companies during the period of the waiver” effectively restricting the owners of the companies from accessing to pay capital obligations.