The Central Bank of Nigeria (CBN) has launched a re-validation process to address complaints from manufacturers and importers regarding foreign exchange claims totaling $2.4 billion. Governor Olayemi Cardoso revealed that the bank, having completed an initial verification phase, is now conducting a second stage to authenticate these claims. This move comes months after the CBN reported clearing $7 billion in FX forwards, but the Manufacturers Association of Nigeria has voiced concerns over unresolved FX forward contracts under the former CBN Governor, Godwin Emefiele. The association attributes significant losses in the industrial sector to these unredeemed contracts.
Cardoso emphasized the importance of maintaining credibility and transparency, as the CBN’s commitment to resolving these claims seeks to restore investor confidence. He also highlighted recent foreign exchange policies that boosted diaspora remittances to $600 million from January to September 2024, up from $200 million annually. According to Cardoso, ongoing engagements with International Money Transfer Operators (IMTOs) have contributed to this growth, and he reiterated the CBN’s dedication to foreign exchange management as a cornerstone of economic stability.
Addressing the broader economic outlook, Cardoso stressed that taming inflation remains a top priority to stabilize the macroeconomic environment. High inflation, he warned, reduces purchasing power and deters investment, ultimately impacting the productive sector. The CBN’s strategy involves orthodox monetary tools and reducing interventions to focus on managing inflation. As inflation moderates, Cardoso expressed hope for lower interest rates, which could ease operational pressures on the real sector, supporting sustainable economic growth and diversification
