Nigeria, April 8 -- The Central Bank of Nigeria (CBN) on Monday issued a directive to all banks prohibiting the use of foreign currency as collateral for Naira loans.

This move comes amid efforts to strengthen the country's financial sector and ensure regulatory compliance.

In a letter addressed to all banks, the CBN outlined new guidelines prohibiting the practice, with exceptions for specific types of foreign currency collateral.

According to the letter signed by Adetona Adedeji, director of banking supervision department, the use of foreign currency-denominated collaterals for Naira loans is now prohibited, except in cases where the collateral is in the form of Eurobonds issued by the Federal Government of Nigeria or guarantees prov...