CBN to Prosecute Forex Defaulters

The Central Bank of Nigeria (CBN) has announced its intention to prosecute forex defaulters in the country.

CBN’s move aims to address the concern of nearly $7 billion in mature forex forwards, which has been a source of worry for investors.

Its Acting Director of Communication, Mrs Sidi Ali revealed the development in a statement in Abuja on Wednesday.

Ali explained that to address the forex exchange issues, the apex bank has commissioned an independent forensic review by a reputable firm.

Furthermore, the CBN has been consistently settling the legitimate foreign exchange backlog over the past three months.

The country’s foreign currency shortages have been exacerbated by declining oil production, which accounts for over 90 per cent of dollar inflows.

The CBN assured that it will fulfill its payment obligations to boost confidence in the foreign exchange market.

Ali said:

“The review revealed grave infractions, gross abuse, and significant non-compliance with market regulations, and appropriate sanctions would be enforced in collaboration with relevant agencies.

“The Central Bank of Nigeria, in its bid to clear the backlog of outstanding foreign exchange liabilities, has paid approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum.

“The Central Bank has also cleared up the entire liability of 14 banks and started settlements with foreign airlines.

“Nevertheless, the CBN will continue to settle the legitimate foreign exchange backlog as it has consistently been doing in the last three months.”