The Central Bank of Nigeria (CBN) has discovered various infractions, gross abuses, and non-compliance with foreign exchange market regulations, prompting the institution to take decisive actions against those responsible.
Mrs. Sidi Ali, the Acting Director of Communication at the CBN, made this announcement in a statement released in Abuja on Wednesday.
Approximately six months ago, the CBN removed the rate cap on the exchange rate and implemented other measures to unify the exchange rate. However, this move resulted in a significant depreciation of the naira, exacerbating inflationary pressures. The CBN currently holds forward contract obligations exceeding $7 billion with banks and firms.
In an effort to clear the backlog of outstanding foreign exchange liabilities, the CBN has reportedly paid around $2 billion across various sectors, including manufacturing, aviation, and petroleum. The bank has also settled the entire liability of 14 banks and initiated settlements with foreign airlines.
As part of its commitment to transparency, the CBN commissioned an independent forensic review by a reputable firm. The review identified serious infractions, gross abuse, and substantial non-compliance with market regulations. The CBN has pledged to enforce appropriate sanctions in collaboration with relevant agencies.
While the CBN remains resolute in sanitizing the financial services sector and fostering trust among market participants and stakeholders, Ali emphasized that the bank will continue to settle legitimate foreign exchange backlogs, maintaining a consistent effort over the last three months.
The Economic and Financial Crimes Commission (EFCC) recently visited the headquarters of Dangote Industries Limited as part of its investigation into alleged preferential allocations of forex to the Dangote Group and 51 other companies. The EFCC had reportedly directed 52 companies to provide documents supporting the allocation and utilization of foreign exchange at official rates over the past decade.
This development comes amid ongoing efforts by the CBN to address challenges in the foreign exchange market, particularly in the wake of reforms introduced six months ago. The bank is working towards achieving a balance between clearing outstanding obligations and implementing corrective measures to ensure compliance with regulations.
