$2.4bn Out Of $7bn Forex Claims Are Fictitious, Says CBN

The Deputy Governor of Corporate Services at the Central Bank of Nigeria, Mohammed Bello, has noted that about $2.4bn out of the claimed backlog of $7bn forex claims were fictitious.

He disclosed this during the 2024 Law Week event of the Nigerian Bar Association at Garki Branch in Abuja on Monday.

Bello noted that upon assumption of office, there were numerous demands for clearance of outstanding forex obligations.

According to him, “Following the completion of the audit, we discovered that about $2.4bn out of the claimed backlog of $7bn were fictitious. The bank thus took steps to clear the authentic forex backlog that has aided the stabilisation of the naira.

“It is imperative to note further that before this settlement, major foreign airlines operating in the country blocked their low inventory seats due to their inability to repatriate trapped FX inflow.

“It is gratifying to add that the clearing of FX backlog for airlines led to the release of cheaper seats to Nigerians, thereby ameliorating the cost of airfares and reducing the demand for FX and as a consequence, the pressure on the naira.”

Also, he said, “the resultant effects of some of these measures are that, this month saw the naira emerge as the best-performing currency globally, which was supported by the bullish sentiments of leading international investment institutions, and the FX market experiencing robust activities with turnover reaching levels not attained in over seven years."

While speaking at the occasion, the National Chairman of the All Progressives Congress, Alhaji Umar Ganduje, applauded the ruling party and President Bola Tinubu’s administration for taking the right steps in reforming the nation.

He stated that, “The APC, of course, is making a difference and if you look at the steps taken by Mr President so far, especially about the economy, where he is reforming the Central Bank of Nigeria and also in terms of curtailing all forms of insecurity in the country. The President is also keen on building a strong institution. So, APC is on course as far as reforming the system.”

The Branch Chairman of NBA, Obioma Ezenwobodo, also noted that the path and record of the branch had been one of fulfilling accomplishments and an undying passion to make a difference and positively impact members of the branch and society.