Nigeria's central bank took decisive action by clearing the entire foreign exchange forwards liability of 14 banks, marking a pivotal development in the nation's economic landscape. This move comes amid concerns about the $7 billion in matured forex forwards, a weight on the naira currency as foreign currency shortages persist despite assurances from the Central Bank of Nigeria (CBN).
Settlements with foreign airlines have commenced as part of the resolution process. In a notable stride, approximately $2 billion of the backlog spanning sectors like manufacturing, aviation, and petroleum has already been disbursed, as confirmed by CBN
spokesperson Hakama Sidi Ali.
The central bank, unwavering in its commitment to restore market confidence, revealed the results of an independent forensic review, exposing "grave infractions, gross abuse, and significant non-compliance with market regulations." Sanctions will be imposed on offenders in collaboration with relevant agencies, Ali emphasized.
Emphasizing a dedication to cleaning up the financial services industry, Ali outlined the ongoing efforts to settle legitimate forex backlog and eliminate outstanding liabilities. This strategic approach aims to foster a healthier economic environment and instill confidence in the market.