An official said on Wednesday that settlements with international airlines have now started after Nigeria’s central bank cleared 14 banks’ whole foreign exchange forwards liabilities.
With the Central Bank of Nigeria (CBN) promising to clear the backlog, investors are extremely concerned about the roughly $7 billion in mature forex forwards in Africa’s largest economy since foreign exchange shortages continue to undermine the value of the naira.
About $2 billion of the backlog has been paid so far in industries like manufacturing, aviation, and petroleum, according to a statement from CBN spokesperson Hakama Sidi Ali.
The central bank commissioned an independent forensic assessment of the backlog, which turned up evidence of “severe infractions, gross abuse, and significant non-compliance with market regulations.”
Appropriate penalties would be applied to violators in coordination with pertinent authorities.
To restore investor trust, the central bank is dedicated to cleaning up the financial services sector, according to Ali, who also stated that the bank will keep clearing the backlog of valid foreign exchange transactions to pay off any outstanding debts.
