Central Bank of Nigeria Clarifies $2.4 Billion Forex Backlog Status and Future Steps.

The Central Bank of Nigeria (CBN) Governor, Yemi Cardoso, recently addressed the status of a $2.4 billion foreign exchange (FX) backlog, emphasizing that it is not valid for settlement. In an exclusive interview with Arise Television, Cardoso revealed that a forensic audit by Deloitte Management Consultant identified various infractions, rendering a significant portion of the initially reported $7 billion FX liabilities as invalid.

In a recent interview with Arise Television, Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), clarified that a $2.4 billion foreign exchange (FX) backlog is not eligible for settlement. This revelation comes after a forensic audit conducted by Deloitte Management Consultant exposed infractions, including non-existent entities and unauthorized FX allocations, leading to the invalidation of a substantial portion of the federal government’s reported $7 billion FX liabilities.

Cardoso explained that the CBN commissioned the audit to distinguish between valid and invalid transactions. The findings highlighted issues such as the absence of valid import documents, non-existent entities, and discrepancies in the allocation of FX to beneficiaries and account parties. These infractions amounted to approximately $2.4 billion out of the initial $7 billion figure.

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The Governor also provided an update on the CBN’s actions, stating that legitimate FX requests totaling $2.3 billion have already been settled. This leaves an outstanding obligation of around $2.2 billion, which the CBN is committed to addressing promptly. Cardoso emphasized the bank’s dedication to honoring only validly constituted FX requests.

Addressing misconceptions about the CBN’s role in economic interventions, Cardoso stressed the importance of thoughtful execution to avoid destabilizing the economy. He acknowledged that excessive liquidity injections have contributed to economic distortions, including inflation. To establish a more stable economic environment, Cardoso highlighted the need for the CBN to refocus on its primary objectives, such as controlling inflation and stabilizing prices, rather than direct interventions.

Cardoso also reassured the public that there are no plans by the federal government to convert domiciliary accounts into naira accounts as part of currency stabilization efforts. He affirmed the CBN’s commitment to resolving outstanding FX obligations and ensuring economic stability through effective collaboration with capable partners for future interventions

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