The Central Bank of Nigeria (CBN) has announced its intention to crack down on individuals and entities who default on their foreign exchange obligations in the country.
In a statement released in Abuja, CBN’s Acting Director of Communication, Mrs. Sidi Ali, revealed that the apex bank is prepared to prosecute forex defaulters. This move comes in the wake of nearly $7 billion in forex forwards maturing, which has raised concerns among investors.
To address these concerns and bolster confidence in the foreign exchange markets, the CBN has committed to fulfilling its obligations by paying the matured forex forwards. Furthermore, the bank has initiated an independent forensic review conducted by a reputable firm to investigate the forex exchange issues in the country.
The findings of the review uncovered serious infractions, abuse, and non-compliance with market regulations. As a result, the CBN has resolved to impose appropriate sanctions in collaboration with relevant agencies to ensure compliance and accountability.
Addressing the pressing issue of foreign currency shortages, exacerbated by declining oil production, the CBN’s statement highlighted the bank’s efforts to settle legitimate foreign exchange backlogs. Over the last three months, the CBN has disbursed approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum.
In addition to these disbursements, the CBN has cleared the entire foreign exchange liability of 14 banks and commenced settlements with foreign airlines. Despite these initiatives, the CBN has reiterated its commitment to consistently addressing legitimate foreign exchange backlogs in the coming months.
The CBN’s firm stance and proactive measures to tackle forex defaulters and address the foreign exchange challenges demonstrate its unwavering dedication to maintaining stability and integrity in Nigeria’s financial markets.
