forex
Resolving Nigeria’s FX Challenges: Expert Urges CBN for Transparency
Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, has called on the Central Bank of Nigeria (CBN) to allow businesses with unresolved $2.4bn foreign exchange forward contracts to present evidence supporting their claims.
He stressed, “I think it is only fair for the CBN to look into their complaints because initially, what the CBN said was that there was a verification exercise that was done before the conclusion that the forwards that were cleared were the ones that were properly verified.”
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Yusuf urged the CBN to invite affected companies to clarify discrepancies in a fair reassessment process. He explained, “If there was any issue with those that were not cleared, those companies were not invited to defend themselves or to offer further explanations.”
The Manufacturers Association of Nigeria and the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture have criticized the situation as a breach of agreement. They argue that the unresolved contracts have created severe financial losses, disrupted operations, and increased currency risks for businesses.
Dr. Yusuf proposed forming a verification committee to review the claims comprehensively. He added, “In the spirit of fairness, the Central Bank (of Nigeria) needs to invite those companies, let them come forward with documents to convince or otherwise the CBN or any other verification authority or committee that they have set up to justify their claims of these obligations.”
The $2.4bn in dispute is part of a larger $7bn backlog of foreign exchange contracts, some of which remain unresolved due to incomplete documentation. Business leaders continue to urge the government to mediate and support manufacturers to alleviate financial pressure and stabilize operations.
