CBN Governor Reveals $2.4 Billion Invalid FX Claims, Addresses Interventions

Mr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), made revelations about the status of outstanding foreign exchange (FX) claims and shed light on discrepancies amounting to $2.4 billion.

Cardoso disclosed that out of the reported $7 billion in outstanding FX liabilities of the federal government, about $2.4 billion were deemed invalid for settlement due to various irregularities.

The CBN Governor highlighted the findings of a forensic audit conducted by Deloitte Management Consultant, which uncovered fraudulent practices within the outstanding FX claims.

He emphasized that some claims lacked valid import documents, while others involved non-existent entities or beneficiaries who received funds beyond their requests.

Despite the challenges posed by the invalid FX claims, Cardoso assured the public that the CBN was committed to addressing the outstanding liabilities promptly.

He stated that the bank had already settled verified FX requests amounting to $2.3 billion and that the total outstanding obligations stood at $2.2 billion.

Cardoso underscored the importance of proper management of liquidity injections into the economy, cautioning against destabilizing effects on monetary policy and inflation.

He clarified that while interventions were necessary during crises, they needed to be executed thoughtfully to avoid adverse repercussions.

Moreover, Cardoso dismissed speculations regarding the conversion of domiciliary accounts to naira accounts as part of currency stabilization reforms.

He emphasized the CBN’s dedication to transparency and accountability in managing FX transactions and ensuring the stability of the local currency.

The revelations made by Governor Cardoso shed light on the challenges facing the FX market and underscore the importance of stringent oversight and accountability measures in managing Nigeria’s financial ecosystem.