The Central Bank of Nigeria (CBN) has announced its intention to prosecute defaulters in the forex market as part of efforts to address issues related to foreign exchange discrepancies in the country.
Mrs. Sidi Ali, the Acting Director of Communication at the CBN, made this disclosure in a statement released on Wednesday in Abuja.
Concerns have been raised about Nigeria’s nearly $7 billion in matured forex forwards, posing a significant worry for investors. To boost confidence in the foreign exchange markets, the CBN has committed to paying off these matured forex forwards.
Sidi Ali revealed that the CBN had commissioned an independent forensic review conducted by a reputable firm to investigate forex exchange issues in the country. The review uncovered serious infractions, gross abuse, and substantial non-compliance with market regulations. The CBN, in collaboration with relevant agencies, has pledged to enforce appropriate sanctions against those found culpable.
Despite the challenges, the CBN assured the public that it would continue to settle legitimate foreign exchange backlogs, as it has consistently done over the past three months.
The statement emphasized the bank’s commitment to clearing outstanding foreign exchange liabilities, with approximately $2 billion already paid across various sectors, including manufacturing, aviation, and petroleum.
Furthermore, the CBN highlighted its successful clearance of the entire liability of 14 banks and ongoing settlements with foreign airlines. The bank remains focused on sanitizing the financial services sector to foster trust among market participants and stakeholders in the Nigerian economy.
The forex shortages in Nigeria have been exacerbated by declining oil production, which constitutes over 90% of the country’s dollar inflows. The CBN’s proactive measures aim to address these challenges and restore stability to the foreign exchange market.
