Central Bank of Nigeria Delays Monetary Policy Meeting Amid Forex Backlog

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The Central Bank of Nigeria (CBN) has deferred its Monetary Policy Committee (MPC) meeting for the second time since the appointment of Governor Olayemi Cardoso in September. The delay, without official communication, has left investors uncertain, coinciding with the unresolved foreign exchange backlog worth several billion dollars. Despite the CBN clearing a significant portion of outstanding matured FX forwards contracts earlier in the month, the delay suggests challenges in securing the anticipated US dollars to address the forex market’s liquidity.

The CBN has postponed its MPC meeting for the second time since Governor Olayemi Cardoso assumed office, leaving investors in speculation without official communication. The delay is linked to the unresolved foreign exchange backlog, with over 75 to 80 percent cleared earlier in the month. Governor Cardoso’s announcement in September aimed to clear approximately $7 billion in FX backlog, and delays may indicate challenges in securing the required US dollars.

Analysts suggest that the MPC’s postponement impacts market sentiment and underscores the need for assurance and insight into the government’s plans to boost investor confidence. The market had anticipated a rate hike, and concerns around MPC consistency may influence investor sentiment in the short term. The MPC meeting is closely watched for signals on inflation control and updates on the overhaul of the nation’s foreign-exchange controls initiated in June by President Bola Tinubu.


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