Central Bank of Nigeria Takes Steps to Clear $10 Billion Forex Backlog

The Central Bank of Nigeria (CBN) has introduced measures to address an estimated $10 billion in foreign exchange backlogs that have been affecting commercial banks and airline operators. This initiative aims to relieve the ongoing forex crisis in the nation. Although the total amount that has been cleared is still unverified, airlines such as Air Peace, which previously reported a $24 million debt owed by the CBN, are starting to see their backlogs resolved.

These actions by the CBN are in line with recent statements from Finance Minister Wale Edun, who projected a $10 billion inflow of foreign currency aimed at alleviating the forex crisis. The funds are being sourced from an undisclosed point.

Moreover, the CBN, under the leadership of Acting Governor Mr. Folashodun Adebisi Shonubi, has plans to shut down non-electronic Bureau De Change (BDC) operations. This decision is expected to further facilitate the clearance of the forex backlog and address concerns regarding the Naira’s devaluation and the influence of BDCs in the forex market.

Stanbic IBTC has confirmed that progress is being made in clearing the backlog of Retail SMIS obligations, although the precise amount that has been cleared thus far remains unspecified.

These concerted actions by the CBN and various banks represent a significant effort to reduce losses for companies burdened by unmet forex demands and to stabilize Nigeria’s forex market.