The Central Bank of Nigeria (CBN) has announced the complete clearance of the valid foreign exchange backlog, fulfilling a promise made by CBN Governor, Mr. Olayemi Cardoso, to address the inherited $7 billion in claims.
Mrs. Hakama Sidi Ali, the Bank’s Acting Director of Corporate Communications, revealed the finalization of payments amounting to $1.5 billion in Abuja on Wednesday. This step effectively addressed the last portions of the FX backlog and reflected the bank’s dedication to stabilizing the national economy.
These payments were part of the rigorous verification process overseen by Deloitte Consulting’s independent auditors, ensuring the settlement of only legitimate claims. Mrs. Ali noted that any invalid transactions were promptly referred to the relevant authorities for further scrutiny.
Complementing this economic progress, the CBN reported a remarkable boost in Nigeria’s external reserves, which increased by $993 million to $34.11 billion as of March 7, 2024, reaching an eight-month high.
This rise was fueled by increased remittance payments from Nigerians abroad and heightened interest from foreign investors in local assets, including government debt securities.
CBN Governor, Yemi Cardoso, had disclosed in February that about $2.4 billion of the reported $7 billion FX liabilities were not valid for settlement. These findings were based on a forensic audit by Deloitte Management Consultant, which identified various infractions, including non-existent entities and unauthorized FX allocations.
Despite the challenges, recent efforts by the CBN to stabilize the naira have shown promising results, with parallel market operators quoting a buy price of N1400/$1, indicating a significant strengthening of the naira. Meanwhile, the exchange rate on the official market fell to N1,560/$1 on Tuesday, the strongest the naira has traded since March 4.
