CBN investigating disputed FX claims amounting to $2.4 billion – Cardoso

CBN Re-validates $2.4 Billion in FX Claims Amidst Controversy

The Central Bank of Nigeria (CBN) has launched a re-validation process to address complaints from manufacturers and importers regarding outstanding foreign exchange (FX) claims worth $2.4 billion.

CBN Governor Olayemi Cardoso announced the initiative at a summit organized by the Nigerian Economic Summit Group, stating that the bank had completed the first phase of verification and was now reviewing claims submitted by manufacturers.

This development comes eight months after the CBN claimed to have cleared all outstanding FX forward contracts, amounting to $7 billion. However, the Manufacturers Association of Nigeria (MAN) disputed this claim, asserting that numerous industries were still owed substantial amounts.

The MAN highlighted that the unresolved FX forward contracts were negatively impacting businesses, leading to significant losses. The association’s Director-General, Segun Kadir, emphasized the need for the CBN to honor these contracts.

While Cardoso previously stated that the team had settled all claims, attendees applauded the announcement of the re-validation process. The CBN governor explained that the bank’s focus was on stabilizing the economy and managing inflation.

Cardoso also highlighted the bank’s efforts to attract diaspora remittances, which have increased to $600 million between January and September 2024 from $200 million annually. He attributed this growth to targeted engagement with international remittance service providers.

The CBN governor emphasized the importance of taming inflation, which can deter investment and reduce purchasing power. He acknowledged the challenges of balancing inflation control with economic growth and expressed hope for a gradual reduction in interest rates as inflation moderates.

Cardoso reiterated the CBN’s commitment to using orthodox monetary tools and avoiding direct market intervention. He emphasized the need for vigilance and continuous adaptation to address evolving economic challenges.