The Central Bank of Nigeria (CBN) has initiated a re-validation process to verify foreign exchange (FX) claims worth $2.4 billion made by manufacturers and importers. CBN Governor, Olayemi Cardoso, made this announcement during a special summit dinner hosted by the Nigerian Economic Summit Group in Abuja on Tuesday night.
Cardoso explained that the central bank has completed the first phase of the verification and is now in the second phase, ensuring the authenticity of these claims. This review follows earlier efforts by the CBN to clear $7 billion in FX forwards, a legacy issue inherited from previous administrations.
However, the Manufacturers Association of Nigeria (MAN) had earlier criticized the CBN for not resolving outstanding FX contracts, which it said were affecting industries and leading to significant losses. MAN’s Director General, Segun Kadir, pointed out that the unresolved $2.4 billion in FX forwards had caused considerable pressure on industries, pushing many into loss declarations.
Cardoso assured that the bank is addressing these claims thoroughly, emphasizing the importance of transparency and credibility in CBN operations. He noted that the re-validation process is vital for maintaining confidence among international investors and ensuring the CBN meets its obligations.
In addition to FX management, Cardoso highlighted significant achievements in boosting diaspora remittances, with the bank facilitating $600 million in remittances from January to September 2024, a substantial increase from the previous $200 million annual figure.
The CBN governor reiterated his focus on curbing inflation, a critical factor for stabilizing Nigeria’s economy. He acknowledged that high inflation reduces purchasing power and hinders investment but expressed optimism that as inflation moderates, interest rates will likely decrease, providing relief to the productive sector.
Cardoso concluded by emphasizing the ongoing nature of the CBN’s work, saying that while significant progress has been made, much remains to be done to ensure Nigeria’s economic stability.
