CBN uncovers FX violations, vows to crack down on culprits

The Central Bank of Nigeria (CBN) has taken a two-pronged approach to the lingering foreign exchange (FX) backlog.

It will crack down on fraudulent activities while simultaneously continuing to settle legitimate forex obligations.

This was revealed by CBN Acting Director, Corporate Communications Department, Hakama Sidi Ali, on Wednesday, January 17, in Abuja.

Sidi Ali disclosed that the CBN commissioned an independent forensic review by “a reputable firm” to uncover any irregularities within the system. The review, she said, uncovered “grave infractions, gross abuse, and significant non-compliance with market regulations,” prompting the CBN to initiate a process of enforcing appropriate sanctions in collaboration with relevant agencies.

Despite the discovered malfeasance, the CBN, led by Hakama Sidi-Ali, said it remains committed to its promise of clearing the forex backlog. Mrs. Sidi Ali highlighted that the bank has already paid approximately US$2 billion across various sectors, including manufacturing, aviation, and petroleum.

Furthermore, the CBN has successfully cleared the entire FX liabilities of 14 banks and begun settlements with foreign airlines.

“The CBN has resolved to sanitize the financial services sector and foster trust among all market participants, as well as internal and external stakeholders, in the Nigerian economy. Nevertheless, the CBN will continue to settle the legitimate foreign exchange backlog as it has consistently been doing in the last three months,” Sidi-Ali said.