By Victoria Adonye Ibiama
The Central Bank of Nigeria (CBN) has officially resolved all valid foreign exchange backlogs, fulfilling a significant commitment made by Governor Olayemi Cardoso, who pledged to address inherited claims totaling $7 billion.
This update was communicated via a statement sent by Hakama Sidi Ali, the CBN’s Acting Director of Corporate Communications.
Ali stated that the CBN recently completed the payment of $1.5 billion, effectively settling all outstanding obligations to bank customers and clearing the residual balance of the FX backlog.
Furthermore, she revealed that independent auditors from Deloitte Consulting meticulously assessed these transactions to ensure that only legitimate claims were honored, while invalid transactions were promptly referred to relevant authorities for further investigation.
Cardoso reiterated the importance of clearing the FX backlog to restore credibility and confidence in the Nigerian economy. He emphasized the necessity of an independent and credible process to authenticate obligations, declaring that all genuine and verifiable transactions have now been cleared.
The clearance of the foreign exchange backlog aligns with the comprehensive strategy outlined during the Monetary Policy Committee meeting held last month, aimed at stabilizing the exchange rate and mitigating imported inflation to foster confidence in the banking system and the broader economy.
Cardoso utilized the MPC meeting and subsequent conference calls with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and enhanced liquidity in the foreign exchange market.
Meanwhile, Nigeria’s external reserves have experienced a notable surge, climbing by $993 million to reach $34.11 billion as of March 7, 2024—the highest level in eight months. This increase was driven by significant advancements in remittance payments from Nigerians abroad and heightened purchases of local assets, including government debt securities, by foreign investors.
