Nigeria’s central bank has recently disbursed nearly $2 billion in overdue foreign exchange forwards over the past three months, aiming to address a substantial backlog of dollars. However, persistent forex shortages continue to impact the country’s naira currency.
The country, boasting Africa’s largest economy, grapples with approximately $7 billion in matured forex forwards, a significant concern for investors. In response, the Central Bank of Nigeria (CBN) has committed to settling these obligations to bolster confidence in the foreign exchange market.
Acting spokesperson Hakama Sadi Ali affirmed this effort in a statement, noting, “In the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost USD 2 billion.” The move underscores the bank’s dedication to resolving pending obligations and fostering a functional foreign exchange market.
Nigeria’s scarcity of foreign currency has intensified due to declining oil production, the country’s primary export that contributes over 90% of dollar inflows.
Ali highlighted the CBN’s recent payment of $61.64 million to foreign airlines, which had sold tickets in local currency but encountered difficulties repatriating their earnings, accumulating an owed sum exceeding $700 million by November’s end.
“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate,” Ali said.
President Bola Tinubu has pledged to enhance foreign currency inflows by attracting fresh investments, scaling up oil production, and implementing reforms in the foreign exchange market.
