The Central Bank of Nigeria (CBN) has announced a pivotal move to inject an additional $500 million in a bid to clear the country’s foreign exchange backlog. Hakama Sidi Ali, the Acting Director of the CBN’s Corporate Communications Department, disclosed this development in Abuja on Monday, January 29.
In reaffirming the bank’s dedication to promptly addressing all legitimate forex backlogs, Sidi Ali stated, “The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.”
Assuring Nigerians of the CBN’s comprehensive strategy to bolster liquidity in the nation’s foreign exchange markets across short, medium, and long-term timelines, Sidi Ali emphasized the focus on tackling underlying issues that have impeded the effective functioning of Nigeria’s forex markets over the years. She echoed the sentiments expressed by the governor, affirming the CBN’s resolve to address these fundamental issues head-on.
This development closely follows the recent infusion of approximately $2 billion by the CBN towards meeting outstanding commitments in the manufacturing, aviation, and petroleum sectors. Notably, in December of the preceding year, the International Air Transport Association (IATA) had issued a warning of Nigeria’s potential expulsion due to a trapped fund amounting to $790 million.
The CBN’s strategic injection of funds aims to alleviate the forex backlog while reinforcing confidence and stability in Nigeria’s foreign exchange market.
