The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has disclosed that security agencies, including the Economic and Financial Crimes Commission (EFCC), are currently investigating questionable foreign exchange allocations and forward contracts previously estimated at $2.4 billion.
This investigation follows the completion of an audit of $7 billion debts inherited by the CBN from the previous administration.
The audit, conducted by global firm Deloitte, identified about $2.4 billion of FX allocations from the $7 billion backlogs as invalid.
Speaking after the 294th meeting of the Monetary Policy Committee in Abuja, Cardoso revealed that law enforcement authorities are scrutinizing the FX transactions that didn’t meet regulatory standards, with the CBN providing necessary documents for the investigation.
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According to Cardoso, the Deloitte report highlighted numerous anomalies, including allocations to fictitious entities and FX allocations without corresponding naira values.
He emphasized the seriousness of these irregularities, describing the transactions under investigation as “clearly unlawful.”
While the CBN has cleared valid FX backlogs, some stakeholders, including members of the Organised Private Sector of Nigeria, have raised concerns about rejected forex bids and lack of transparency in the process.
Despite a recent stakeholder meeting convened by the Ministry of Industry Trade and Investment, where affected businesses, banks, and customers discussed their concerns, threats of legal action against commercial banks persist.
Cardoso assured stakeholders that the forex market remains open and transparent for addressing outstanding contractual obligations.
He reiterated the CBN’s commitment to maintaining a stable and liquid market for economic prosperity.
In addition to the ongoing investigation, the CBN has directed deposit money banks to expedite actions on increasing their capital base to strengthen the financial system against potential risks.
The move aligns with the CBN’s efforts to support Nigeria’s economic growth aspirations, aiming to become a $1 trillion economy by 2026.
Despite the naira’s recent appreciation against the dollar, reaching N1,382/$ on Tuesday, the prices of goods and services have not reduced significantly.
This appreciation, attributed to forex stability resulting from CBN policy actions and reforms, is expected to enhance investor confidence and attract foreign investments to Nigeria.
However, import-dependent Nigeria may still face inflationary pressures due to a weaker naira making imported goods more expensive.
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