• Wednesday, February 21, 2024
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CBN says it has cleared $2bn forex backlog, warns defaulters of sanctions

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The Central Bank of Nigeria (CBN) on Wednesday said it has successfully disbursed around $2 billion across key sectors, including manufacturing, aviation, and petroleum, as part of its concerted effort to eliminate the backlog of outstanding foreign exchange liabilities.

Hakama Sidi Ali, CBN’s acting director of corporate communications, revealed in a statement on Wednesday in Abuja that the apex bank has not only settled the entire liability of 14 banks but has also initiated settlements with foreign airlines.

The CBN’s move is aimed at addressing the lingering challenges in the foreign exchange market.

Ali highlighted that an independent forensic review by a reputable firm had been commissioned by the CBN, revealing serious infractions, gross abuse, and significant non-compliance with market regulations.

The spokesperson emphasized that appropriate sanctions would be enforced in collaboration with relevant agencies to rectify these issues.

While expressing the CBN’s commitment to cleaning up the financial services sector, Ali stressed the importance of fostering trust among market participants and both internal and external stakeholders in the Nigerian economy.

Despite the identified challenges, Ali assured that the CBN would continue settling legitimate foreign exchange backlogs, consistent with its track record over the past three months.

Notably, last week, the CBN announced the disbursement of approximately $61.64 million to foreign airlines through various banks, demonstrating ongoing efforts to decrease remaining liabilities to airlines.

Market observers are keenly watching how the CBN’s measures will impact the overall stability of the foreign exchange market and financial sector in Nigeria.