The Central Bank of Nigeria (CBN) declared yesterday that it has successfully settled all valid Foreign Exchange (FX) backlogs owed to various sectors of the economy. This announcement marks the fulfillment of a significant commitment by CBN Governor, Mr. Olayemi Cardoso, to address an inherited backlog of $7 billion in outstanding liabilities.
The FX settlement comes as the naira continues to appreciate, experiencing notable gains in both the official and parallel markets. At the parallel market, the local currency appreciated by N100 against the US dollar, rising from N1,590/$1 on Tuesday to N1,490/$1. Similarly, at the official Nigerian Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1,492.61 to the dollar, marking a N67.96 gain compared to the previous day’s rate of N1,560.57.
Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, confirmed that the bank had settled all FX indebtedness. In a statement released to THISDAY, Ali disclosed that the CBN recently completed the payment of $1.5 billion to settle obligations to bank customers, effectively clearing the residual balance of the FX backlog. She further explained that independent auditors from Deloitte Consulting meticulously assessed these transactions to ensure that only legitimate claims were honored.
The resolution of the FX backlogs represents a significant milestone in the efforts to stabilize Nigeria’s foreign exchange market and boost investor confidence. It reflects the CBN’s commitment to addressing economic challenges and creating a conducive environment for sustainable growth and development. With the settlement of these obligations, stakeholders can anticipate improved liquidity and stability in the FX market, which are essential for fostering economic resilience and prosperity.
