In a significant move aimed at addressing concerns in the foreign exchange markets, the Central Bank of Nigeria (CBN) has announced its intention to prosecute forex defaulters in the country. This revelation came from Mrs. Sidi Ali, the Acting Director of Communication at the CBN, in a statement released in Abuja on Wednesday.
The CBN has expressed a commitment to pay nearly $7 billion in matured forex forwards to boost investor confidence. To investigate and address the issues surrounding forex exchange in the country, the apex bank has commissioned an independent forensic review by a reputable firm.
The review uncovered grave infractions, gross abuse, and significant non-compliance with market regulations. In response, the CBN emphasized its determination to enforce appropriate sanctions in collaboration with relevant agencies.
Despite challenges such as declining oil production, which constitutes over 90% of the country’s dollar inflows, the CBN remains dedicated to settling legitimate foreign exchange backlogs. Over the past three months, the central bank has paid approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum.
The statement from Mrs. Sidi Ali highlighted the CBN’s ongoing efforts to clear outstanding foreign exchange liabilities. It mentioned that the bank has successfully cleared the entire liability of 14 banks and initiated settlements with foreign airlines.
The CBN sees the independent forensic review as a crucial step in sanitizing the financial services sector and fostering trust among all market participants, both internal and external stakeholders in the Nigerian economy. The statement concluded by reiterating the CBN’s commitment to continuing the settlement of legitimate foreign exchange backlogs, emphasizing its consistent efforts over the last three months.
