The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has disclosed that security agencies are probing questionable foreign exchange allocations and forward contracts worth $2.4 billion. This move comes after an audit of $7 billion debts inherited by the current CBN administration.
Cardoso revealed that Deloitte, a global firm, conducted the audit, uncovering irregularities in the forex transactions. Speaking after the 294th Monetary Policy Committee meeting in Abuja, Cardoso stated, “Security agencies are investigating FX transactions declared invalid by the audit report.”
He highlighted discrepancies such as allocation to fictitious entities and FX provision without corresponding naira value. Cardoso emphasized, “The majority of transactions did not meet the criteria for payment.”
Addressing concerns, Cardoso assured that if findings suggest validity, the information will be made public. He added, “Valid transactions have been settled by the CBN.”
Meanwhile, some private sector members oppose forex rejection, considering legal action against banks. Despite stakeholder meetings, dissatisfaction persists over transparency in the CBN’s clearing process.
Responding to stakeholders, Cardoso reiterated the market’s openness, urging compliance with recognized backlogs settlement. He clarified that fertilizers distributed through the Ministry of Agriculture were residual interventions, not direct CBN actions.
Regarding banking sector stability, Cardoso noted satisfaction but urged banks to expedite recapitalization efforts. This move aims to mitigate potential risks in an evolving global landscape.
In currency markets, the naira strengthened to N1,382/$, a 2.75% gain. Cardoso attributed this to recent CBN reforms, aiming for sustained stability and enhanced investor confidence.
Despite currency gains, prices of goods and services remain high, fueling concerns about inflation.