The Central Bank of Nigeria (CBN) has successfully resolved all legitimate foreign exchange backlogs, as stated by the Bank’s Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, in Abuja on Wednesday evening. Mrs. Sidi Ali emphasized that this action was a crucial commitment by CBN Governor, Mr. Olayemi Cardoso, to address a previously accumulated backlog of US$7 billion in claims.
Furthermore, Mrs. Sidi Ali highlighted that the CBN recently completed a $1.5 billion payment to fulfill obligations to bank customers, effectively clearing the remaining balance of the FX backlog. She also mentioned that Deloitte Consulting, as independent auditors, meticulously reviewed these transactions to ensure that only valid claims were settled.
The CBN spokesperson added that any unauthorized transactions were promptly forwarded to the appropriate authorities for further investigation. Governor Cardoso emphasized during a recent meeting the significance of prioritizing the clearance of the FX backlog to rebuild trust and confidence in the Nigerian economy. He stressed the importance of an independent and credible process to authenticate these obligations, confirming that all genuine and verifiable transactions have now been settled, eliminating any doubts about the country’s ability to meet its commitments.
The resolution of the foreign exchange transactions backlog aligns with the comprehensive strategy outlined in the Monetary Policy Committee meeting held last month to stabilize the exchange rate and mitigate imported inflation, fostering trust in the banking sector and the economy.
Governor Cardoso utilized the MPC meeting and a subsequent conference call with foreign portfolio investors to outline expectations for continuous growth in Nigeria’s foreign currency reserves and enhanced liquidity in the foreign exchange market.
Following these actions, the CBN reported a substantial increase in external reserves, surging by $993 million to $34.11 billion as of March 7, 2024, marking the highest level in eight months. The month-on-month rise was propelled by a significant upsurge in remittance payments from Nigerians abroad and increased acquisitions of local assets, including government debt securities, by foreign investors.
