CBN Finally Settles $2 Billion Foreign Exchange Backlog

On Wednesday, the Central Bank of Nigeria (CBN) announced that it had successfully distributed $2 billion across key sectors, including aviation, manufacturing, and petroleum, to settle the backlog of its outstanding foreign exchange liabilities.

This was revealed on Wednesday in Abuja by Hakama Sidi, the CBN acting director of corporate communications, where she said that the apex bank has not only settled the entire liability of 14 banks but has also initiated settlements with foreign airlines.

The CBN said that the move to clear the backlogs addresses the lingering challenges in the foreign exchange market.

Ali also highlighted that the CBN has commissioned an independent forensic review by a reputable firm, revealing serious infractions, gross abuse, and significant non-compliance with market regulations.

The spokesperson for the commission said that the necessary regulations will be enforced in collaboration with the relevant agencies to rectify these issues.

Discussing the CBN’s commitment to cleaning up the financial services sector, Ali addressed the importance of fostering trust among market participants and internal and external stakeholders in the Nigerian economy.

Despite the identified challenges, Ali said that the CBN would continue settling legitimate foreign exchange backlogs, consistent with its track record over the past three months.

Last week, the CBN said it would release approximately $61.64 million to foreign airlines through various banks, demonstrating ongoing efforts to decrease remaining liabilities to airlines.