The Central Bank of Nigeria (CBN) has exposed various infractions, gross abuses, and non-compliance with regulations in the foreign exchange market. In response, the apex bank has committed to taking decisive action against those responsible, in collaboration with relevant agencies, as announced by the CBN Acting Director of Communication, Mrs. Sidi Ali, in a statement released in Abuja on Wednesday.
This revelation follows the CBN’s decision six months ago to remove the rate cap on the exchange rate and implement measures aimed at unifying the exchange rate. However, the consequences of these actions have resulted in a significant depreciation of the naira, exacerbating inflation concerns.
Notably, the CBN holds forward contract obligations exceeding $7 billion to banks and firms. In an effort to address the backlog of outstanding foreign exchange liabilities, the apex bank has disbursed approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum, according to the CBN spokeswoman.
As part of its commitment to transparency, the CBN commissioned an independent forensic review by a reputable firm. The review uncovered serious infractions, gross abuse, and substantial non-compliance with market regulations. The CBN has pledged to enforce appropriate sanctions in collaboration with relevant agencies, signaling its determination to sanitize the financial services sector and build trust among market participants and stakeholders in the Nigerian economy.
Despite the challenges, the CBN reiterated its commitment to settling legitimate foreign exchange backlogs, a practice it has consistently maintained over the last three months. The ongoing efforts to clear the backlog aim to ease pressure on the country’s exchange rate and enhance investor confidence in the Nigerian economy.
In a related development, the Economic and Financial Crimes Commission (EFCC) has initiated a probe into alleged preferential allocations of forex to Dangote Group and 51 other companies. The EFCC recently visited the headquarters of Dangote Industries Limited in Ikoyi, Lagos, as part of its investigation. The commission had earlier written to 52 companies, directing them to provide documents supporting the allocation and utilization of foreign exchange at official rates over the past decade, specifically requesting Form A and Form M submissions between 2014 and June 2023.