The Central Bank of Nigeria (CBN) has initiated a re-validation exercise aimed at addressing the complaints of manufacturers and importers regarding foreign exchange claims totaling $2.4 billion. CBN Governor Olayemi Cardoso announced this development during a special summit dinner hosted by the Nigerian Economic Summit Group in Abuja on Tuesday night.
Governor Cardoso explained that the bank has completed the first stage of verification and is now progressing to a second stage to authenticate the claims made by manufacturers. This move is particularly significant following a challenging period for the manufacturing sector, which has faced increasing pressure related to foreign exchange operations.
The new re-validation exercise comes eight months after the CBN claimed to have cleared FX forwards worth $7 billion, effectively alleviating a legacy burden that had persisted in the sector. Despite this progress, the Manufacturers Association of Nigeria (MAN) has raised concerns regarding unredeemed FX forward contracts that were incurred during the tenure of the former CBN governor, Godwin Emefiele.
In August, the association publicly stated that the continued inability of the CBN to resolve these outstanding issues was contributing to substantial losses for industries across the country. The lack of clarity and resolution has placed immense pressure on manufacturers, many of whom are struggling to maintain operational viability amid fluctuating exchange rates and economic instability.
The re-validation process is expected to bring clarity to the foreign exchange claims landscape and provide manufacturers with much-needed assurance regarding their financial commitments. The CBN’s proactive approach aims to restore confidence within the manufacturing sector and address the challenges that have hindered growth and stability.
As the CBN continues its verification efforts, industry stakeholders are hopeful that timely resolutions will lead to a more favorable business environment, ultimately supporting Nigeria’s economic recovery and growth.
