Forex Backlog: CBN Now Owes $5bn; Settles Commercial Banks

The Central Bank of Nigeria, CBN, says it has cleared the foreign exchange backlog owed some commercial banks in the country.

A statement released on Wednesday by the apex bank’s spokesperson, Hakama Sidi Ali said the banks’ forex forward has now been fully settled without mentioning specific banks.

But the magazine learned that no fewer than 14 local and foreign commercial banks have now received their Forex settlement in full.

The development comes three months after the CBN Governor Yemi Cardoso said last September that  the apex bank has started clearing the $7 billion Forex owed various sectors of the economy.

Analysts insist that the CBN action is likely to repose confidence in the Forex market which has been fluctuating due to Forex shortages, leading to further devaluation of the naira.

The petroleum, aviation, and manufacturing sectors  have now received a total of $2 billion from CBN as Forex settlement, according to the figures from the Cardoso-led government bank.

Few weeks ago, Reuters, quoting  banking sources, said, the banks were paid varying amounts totalling about $1 billion and that the payments would continue in the next few weeks as more liquidity is received by the apex bank.

Out of the first tranche of $1 billion, some commercial banks were said to have been fully settled while others received as much as 70 percent from the CBN. 

Commercial bank’s paid up to $7 billion to foreign credit lines after the CBN failed to pay the debt at maturity due to Forex scarcity.

Meanwhile, the apex has stated that a reputable forensic firm has been hired to investigate serious gross infractions, abuse and non-compliance with market regulation. Those found guilty would be seriously sanction after investigations are concluded, the CBN said.

Recall that the Economic and Financial Commission, EFCC, recently stormed the Lagos office of the Dangote Group, in the quest to get documents to indict the company owned by Africa’s Richest man, Aliko Dangote on alleged forex roundtripping.

The company has denied any wrongdoing.