The Central Bank of Nigeria (CBN) has called for law enforcement intervention to investigate foreign exchange forwards claims amounting to $2.4 billion, challenging recent assertions that it had cleared all backlogs.
Speaking in Abuja after the Monetary Policy Committee (MPC) meeting, Governor Cardoso stated that the allegations were baseless. He emphasized that the CBN had resolved all valid FX obligations based on a forensic audit report by Deloitte consultants.
Cardoso highlighted the imperative of addressing the backlog of forward transactions inherited upon assuming office in September. While certain tranches were settled initially, discrepancies arose concerning the authenticity of several transactions. Consequently, Deloitte management consultants were engaged to conduct a thorough forensic examination, revealing numerous irregularities.
“We refused to validate those particular transactions because, apart from the fact that the documentation was not satisfactory, in many cases, they were outright illegal,” Cardoso stated.
He reiterated the CBN’s commitment to investigating any contrary information but affirmed that law enforcement agencies were scrutinizing transactions deemed invalid by the CBN.
Acknowledging stakeholders with existing backlogs, Cardoso urged them to engage the market to resolve such issues. He assured stakeholders that the CBN is diligently addressing distortions hindering the naira rates’ price discovery.
While affirming the CBN’s stance against direct development financing, Cardoso clarified recent fertilizer donations to the Ministry of Agriculture. He emphasized the CBN’s willingness to collaborate with entities capable of successful interventions, extending beyond direct funding to capacity building and regulatory support.
Cardoso concluded by expressing the CBN’s vision for reduced intervention in the foreign exchange market, aiming for minimal involvement in the future while ensuring market liquidity to meet genuine demands.
