Some businesses operating under the umbrella of the Organised Private Sector of Nigeria (OPSN) are contemplating legal action against commercial banks for failing to honor foreign exchange (forex) requests, which have remained pending for an extended period. This move follows the assertion by the Central Bank of Nigeria (CBN) that all valid forex backlogs have been cleared, a claim disputed by members of the OPSN.
Claim Dispute and Stakeholder Meeting
Despite recent statements from the CBN indicating the resolution of all valid forex backlogs, OPSN members remain skeptical. They argue that the clearance process lacked transparency and failed to address concerns about the legitimacy of the requests. These discrepancies have prompted discussions of legal recourse against the banks.
The threat of litigation arises despite a stakeholder meeting convened by the Minister of Industry, Trade, and Investment on March 21, 2024, involving key stakeholders such as the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), the Manufacturers Association of Nigeria (MAN), affected banks, and customers.
CBN’s Assertion and Financial Landscape
The CBN recently announced the successful clearance of all valid forex backlogs, citing an increase in external reserves as evidence of its efforts. The completion of the $1.5bn payment marked a milestone in resolving outstanding obligations to bank customers.
However, skepticism persists among OPSN members, with claims that many businesses still have funds trapped in banks without clarity on the validity of their forex requests.
Threat of Legal Action and Call for Government Intervention
Members of OPSN, including the Nigerian Association of Small Scale Industrialists (NASSI) and NACCIMA, are considering legal action to compel intervention from the CBN. They argue that the lack of communication regarding the rejection of forex bids has left businesses in limbo.
Stakeholder Recommendations
During the stakeholder meeting, participants emphasized the need for direct engagement with the CBN to address outstanding forex issues. They called for transparency and expedited resolution to restore confidence in financial institutions and government policies.
Bottom Line
The unresolved forex backlog poses significant challenges to businesses, affecting their credibility and operations. OPSN members are urging swift action from the CBN and the Ministry of Trade and Industry to mitigate the impact of unmet forex requests and prevent further economic disruptions.
