According to interim Director of Corporate Communications Mrs. Hakama Sidi Ali, the Central Bank of Nigeria (CBN) has paid off all legitimate backlogs in foreign exchange. This was said on Wednesday. Seven billion dollars’ worth of historical forward FX liabilities were paid off with the last payment.
“A major commitment of the CBN Governor, Mr. Olayemi Cardoso, to process an inherited backlog of US$7 billion in claims,” the statement read. According to Mrs. Sidi Ali, the CBN has completed paying $1.5 billion to resolve debts owed to bank clients, thereby resolving the remaining amount of the foreign exchange backlog.
She also revealed that these transactions were carefully examined by independent auditors from Deloitte Consulting, who made sure that only valid claims were honored.
“Any invalid transactions were promptly referred to the relevant authorities for further scrutiny,” the CBN spokesperson added. At a recent meeting, Governor Cardoso declared: “We made clear the FX backlog a priority to restore credibility and confidence in the Nigerian economy.
“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.”
Clearance of the foreign exchange transaction 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.
The CBN followed this by reporting a significant increase in external reserves, rising by $993 million to $34.11 billion as of March 7, 2024, the highest level in eight months.
The increase was driven by a marked advance in remittance payments by Nigerians overseas, as well as higher purchases of local assets, including government debt securities, by foreign investors.
