The Central Bank of Nigeria (CBN) has exposed invalid foreign overdue claims amounting to $2.4 billion, contributing to the prolonged pressure on the naira and unsettling the currency market, according to Central Bank Governor Olayemi Cardoso. The discovery followed an audit by a consultant engaged by the Central Bank, revealing numerous questionable transactions.
The audited accounts, made public last year after seven years of being concealed, exposed a $7 billion backlog of unmet dollar demand, posing a market overhang that could further depress the naira unless resolved. Deloitte was hired by the CBN to investigate these forex claims, revealing that $2.4 billion of the backlog were false claims, with claimants unable to provide import documents in some instances.
Mr. Cardoso stated that the infractions ranged from lack of valid import documents to non-existent entities and instances where entities received more foreign exchange than requested or even without making requests. The findings highlight the need for a closer examination of outstanding obligations and a concerted effort to address irregularities.
