The Central Bank of Nigeria has successfully cleared the foreign exchange liabilities of 14 banks, with settlements now underway for foreign airlines, as announced by an official on Wednesday.
Nigeria, the largest economy in Africa, faced concerns with approximately $7 billion in matured forex forwards. This raised worries among investors due to ongoing shortages of foreign currency, impacting the value of the naira. Despite assurances from the Central Bank of Nigeria (CBN) to address the backlog, the situation persisted.
CBN spokesperson Hakama Sidi Ali shared in a statement that around $2 billion of the backlog, spanning sectors like manufacturing, aviation, and petroleum, has already been paid.
An independent forensic review commissioned by the central bank uncovered serious violations, abuse, and significant non-compliance with market regulations in handling the backlog. Ali stated that appropriate sanctions would be imposed on those responsible, in collaboration with relevant agencies.
Ali emphasized the central bank’s dedication to cleaning up the financial services industry to enhance market confidence. The bank is committed to settling legitimate forex backlogs to clear all outstanding liabilities.
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