CBN declares ‘war’ on forex defaulters

According to the Central Bank of Nigeria (CBN), the nation’s FX defaulters would face legal action.

This was revealed in a statement made in Abuja on Wednesday by Mrs. Sidi Ali, CBN’s acting director of communication.

Investors are extremely concerned about Nigeria’s roughly $7 billion in matured currency forwards, but the CBN pledged to settle the balance to restore trust in the foreign exchange markets.

Sidi clarified that to investigate the nation’s foreign exchange problems, the apex bank hired a respectable company to conduct an independent forensic assessment.

She stated, “The review revealed grave infractions, gross abuse, and significant non-compliance with market regulations, and appropriate sanctions would be enforced in collaboration with relevant agencies.”

She added that, as it has done for the past three months, the CBN will keep paying out the backlog of genuine foreign exchange.

Since oil is Nigeria’s main export and provides more than 90% of its foreign exchange inflows, its diminishing oil production has worsened its foreign exchange problems.

“The Central Bank of Nigeria, in its bid to clear the backlog of outstanding foreign exchange liabilities, has paid approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum,” the statement said.

“The Central Bank has also cleared up the entire liability of 14 banks and started settlements with foreign airlines.

“Nevertheless, the CBN will continue to settle the legitimate foreign exchange backlog as it has consistently been doing in the last three months,” the statement read in part.

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