**Date:** September 5, 2023
The Acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, has announced that the apex bank will settle all outstanding forward contract debts owed to banks in the next one to two weeks. The specific amount of the outstanding dollar debts was not disclosed, although a report by JPMorgan estimated it at $6.84 billion.
Shonubi dismissed the JPMorgan report and stated that the CBN had been in discussions with banks for a while regarding the forward contract debts, assuring that they would be repaid within the specified time frame.
He clarified, “There is no outstanding $7 billion as claimed by JP Morgan. It was just their opinion that was put on paper, and many people jumped on it. In response to questions about the backlogs, the banks have been working with the CBN on various structures to clear them. So, what happens is that at maturity, they make the foreign exchange available to those that need it. We are discussing with them so we can structure their own. So, we are working towards clearing them in the next one or two weeks. It is something we have been discussing for a while.”
Additionally, Shonubi revealed that the CBN was investigating a Bureau De Change operator named Crown Agent for illegally bringing forex into the country and selling it at rates lower than the official exchange rate. The CBN governor warned that all erring BDC operators would face consequences for their actions.
He emphasized the CBN’s commitment to stabilizing exchange rates, noting that the bank’s interventions in the market aimed to ensure rate stability and effectively manage the flow of foreign exchange. Shonubi explained that the CBN’s contribution to market volumes was less than 25%, highlighting the bank’s focus on stabilizing rates rather than becoming a dominant player in the market.
