By 
The Central Bank of Nigeria (CBN) revealed on Wednesday that it had uncovered severe infractions, substantial abuse, and notable non-compliance with market regulations among players in the foreign exchange (FX) segment. The disclosure stemmed from a forensic review conducted by a credible independent firm engaged by the apex bank, prompting the CBN to announce impending sanctions against the offenders in collaboration with relevant authorities.
The acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, conveyed this information in a statement. However, details regarding the specific infractions, the involved institutions, or individuals were not disclosed. Similarly, the identity of the independent firm commissioned by the CBN was not revealed.
Despite the lack of specific information, the CBN affirmed its commitment to settling all legitimate foreign exchange backlogs in the future. The bank highlighted that it has already disbursed approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum, as part of its determined effort to clear outstanding foreign exchange liabilities.
Over the last three months, the CBN underscored its consistency in settling legitimate FX backlogs, clearing the entire liability of 14 banks in the process. Ali emphasized that the central bank remains dedicated to cleansing the financial services sector and fostering trust among all market participants, both internal and external stakeholders.
In a recent development, the CBN disbursed around $61.64 million to foreign airlines through various Deposit Money Banks (DMBs). The bank also redeemed outstanding forward liabilities totaling about $2 billion in the past three months, demonstrating its commitment to eliminating the backlog of pending matured foreign exchange and alleviating pressure on the exchange rate.
This move aims to boost the Naira against major world currencies and enhance investor confidence in the Nigerian economy. The federal government, having received $2.25 billion out of the $3.3 billion foreign exchange (FX) facility from the African Export–Import Bank (Afreximbank), seeks to address the acute FX shortage that has hindered economic activities and investor confidence.
The recent credit support, facilitated by Afreximbank and United Bank for Africa (UBA), contributes to resolving the existing FX backlogs estimated at $7 billion to $10 billion. Clearing these backlogs is crucial to instilling confidence among investors, some of whom have exited the country due to persistent liquidity constraints.
In December, President Bola Tinubu assured Nigerians of his administration’s commitment to injecting funds into the market to resolve the FX backlogs and enhance the liquidity situation in the economy. Additionally, Afreximbank, as the Mandated Lead Arranger, closed a $3.3 billion liquidity support for Nigeria through a structured financing arrangement with NNPC Limited, further contributing to the efforts to address FX challenges.
Comments