The Central Bank of Nigeria has announced its intention to prosecute forex defaulters in the country, as revealed by the CBN Acting Director of Communication, Mrs. Sidi Ali, in a statement issued in Abuja on Wednesday. Nigeria is facing a significant concern with nearly $7 billion in matured forex forwards, impacting investor confidence. Despite this, the CBN has assured that it will fulfill payment obligations to bolster confidence in the foreign exchange markets.
Mrs. Sidi further clarified that the apex bank had initiated an independent forensic review, conducted by a reputable firm, to address forex exchange issues in the country. The review exposed severe infractions, gross abuse, and substantial non-compliance with market regulations, leading to the decision to enforce appropriate sanctions in collaboration with relevant agencies.
Additionally, she emphasized the CBN’s commitment to addressing the legitimate foreign exchange backlog, a practice consistently maintained over the last three months. Nigeria’s foreign currency shortages have been exacerbated by a decline in oil production, the country’s primary export, contributing to more than 90 percent of dollar inflows.
The provided statement indicates that the Central Bank of Nigeria (CBN) has made efforts to address the backlog of outstanding foreign exchange liabilities, having disbursed approximately $2 billion across various sectors such as manufacturing, aviation, and petroleum. The bank has also successfully cleared the entire liability of 14 banks and initiated settlements with foreign airlines.
The CBN, in its commitment to transparency and accountability, commissioned an independent forensic review conducted by a reputable firm. The review, however, exposed grave infractions, gross abuse, and significant non-compliance with market regulations. In response, the CBN has affirmed its determination to enforce appropriate sanctions in collaboration with relevant agencies.
Despite these challenges, the CBN has begun the payment of the forex backlog for qualified transactions. The statement emphasizes the central bank’s unwavering dedication to cleansing the financial services sector and building trust among all market participants, as well as internal and external stakeholders in the Nigerian economy.
The CBN spokesperson, Mrs. Sidi, underscores that, notwithstanding the identified issues, the central bank will persist in settling legitimate foreign exchange backlogs, maintaining a consistent effort over the past three months.