The Central Bank of Nigeria (CBN) has initiated a re-validation exercise to address manufacturers’ and importers’ complaints over unredeemed foreign exchange (FX) contracts worth $2.4 billion. This was disclosed by the CBN Governor, Olayemi Cardoso, during a special summit dinner hosted by the Nigerian Economic Summit Group in Abuja.
Cardoso revealed that while the first phase of verifying claims has been completed, the apex bank is currently in the second phase of authentication, focusing on manufacturers’ complaints. This step follows the CBN’s earlier claim of having settled $7 billion worth of FX forward contracts, clearing a significant backlog. However, many in the real sector, particularly the Manufacturers Association of Nigeria (MAN), expressed frustration over the unresolved $2.4 billion in contracts, a burden inherited from the administration of former CBN governor, Godwin Emefiele.
Segun Kadir, Director-General of MAN, highlighted the growing pressure on industries, which has led to some major players reporting significant losses tied to these unsettled FX forwards. “Most of our big industries are declaring losses, and some of these losses are traceable to this issue of not honouring FX Forward contracts,” he stated.
Cardoso, addressing the business community, assured that the CBN is dedicated to transparency and credibility. He stressed the importance of meeting international obligations, saying, “We had to ensure that we could walk the talk… You have to be transparent in the way you undertake your operations.”
In addition to tackling FX-related challenges, Cardoso revealed that recent policies have boosted diaspora remittances, reaching $600 million between January and September 2024—three times the $200 million remitted annually in previous years. The CBN governor also reiterated his commitment to stabilizing Nigeria’s economy by controlling inflation, reducing interest rates, and supporting the real sector.
Looking forward, Cardoso acknowledged that while significant progress has been made, the journey to economic stability remains long.