The Central Bank of Nigeria (CBN) reports that it has successfully settled all outstanding foreign exchange (FX) obligations.
Hakama Sidi Ali, CBN‘s acting director of corporate communications, confirmed this in a statement on Wednesday.
Ali stated that the financial regulator recently completed a $1.5 billion payment to settle obligations to bank customers, effectively settling the remaining balance of the FX backlog.
On February 5, CBN Governor Olayemi Cardoso stated that when he took over the apex bank in September 2023, he inherited a $7 billion FX backlog, which has since been reduced to $2.2 billion.
Regarding the backlog settlement, Ali stated that “independent auditors from Deloitte Consulting meticulously assessed these transactions, ensuring that only legitimate claims were honoured”.
She said any invalid transactions were promptly referred to the relevant authorities for further scrutiny.
Ali said:
“Clearance of the foreign exchange transactions backlog is part of the overall strategy detailed in last month’s Monetary Policy Committee meeting to stabilise the exchange rate and thereby curb imported inflation, spurring confidence in the banking system and the economy.”
“Cardoso used the MPC meeting and a subsequent conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.”
According to the spokesperson, at a recent meeting, Cardoso said CBN made clearing the FX backlog a priority to restore credibility and confidence in the Nigerian economy.
He said:
“It was important that we go through an independent and credible process that would determine the authenticity of those obligations, and, at this point, I can tell you that we have now cleared all genuine, verifiable transactions.”
“This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us.”