CBN to sanction FX defaulters, clears backlog of 14 banks

• .…pays $2bn across sectors

THE Central Bank of Nigeria (CBN) has paid nearly $2 billion across various sectors, including manufacturing, aviation, and petroleum, vowing to sanction foreign exchange defaulters in the country.

The apex bank has also cleared the entire liability of 14 banks and started settlements with foreign airlines, CBN said in a statement sent to Economy Post on Wednesday night.

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The CBN Acting Director, Corporate Communications Department, Ms Hakama Sidi Ali, disclosed in the statement on Wednesday, January 17, 2024, explaining that the apex bank had commissioned an independent forensic review by a reputable firm. She also disclosed that payment of the forex backlog for qualified transactions had commenced.

She, however, noted that the review reve`aled grave infractions, gross abuse, and significant non-compliance with market regulations, noting that appropriate sanctions would be enforced in collaboration with relevant agencies.

Ms Sidi Ali stressed the CBN’s resolve to sanitise the financial services sector and foster trust among all market participants, as well as internal and external stakeholders, in the Nigerian economy.

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She further said the CBN would continue to settle the legitimate foreign exchange backlog as it had consistently been doing in the last three months.

CBN pays fraction of airlines’ backlog

The CBN had, on January 8 2024,  disbursed $61.64 million to foreign airlines through various banks.

The CBN had explained in a recent statement that it was in fulfilment of its commitment to settle the backlog of pending matured foreign exchange in deposit money banks (DMBs).

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“This underscores the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market,” CBN’s spokesperson, Ms Sidi Ali, had said.