*ABUJA, Jan 17 – Nigeria’s central bank has successfully cleared the entire foreign exchange forwards liability of 14 banks, with settlements initiated with foreign airlines, according to an official statement on Wednesday. The move addresses concerns of investors as Nigeria, Africa’s largest economy, grapples with about $7 billion in matured forex forwards, contributing to foreign currency shortages that impact the naira currency. The Central Bank of Nigeria (CBN) has assured ongoing efforts to clear the backlog.Thank you for reading this post, don't forget to subscribe!
To date, approximately $2 billion of the backlog spanning sectors such as manufacturing, aviation, and petroleum has been settled, as revealed by CBN spokesperson Hakama Sidi Ali. The central bank conducted an independent forensic review of the backlog, exposing “grave infractions, gross abuse, and significant non-compliance with market regulations.”
Ali affirmed that appropriate sanctions would be imposed on offenders, working in collaboration with relevant agencies. The central bank remains committed to enhancing market confidence by cleaning up the financial services industry. It will persist in settling legitimate forex backlogs to eliminate all outstanding liabilities.