The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced the completion of forensic verification to clear all pending foreign exchange backlogs, with payments set to commence soon.
Speaking at the launch of the Foreign Exchange Code, Cardoso reflected on the challenges faced in addressing the $7 billion foreign exchange backlog, which took over 12 months to clear in 2024.
“In March last year, the CBN announced the clearance of the backlog, effectively eliminating a legacy burden,” he said.
The CBN governor emphasized that the era of multiple exchange rates, which favored a select few, is over. He warned that any deposit money bank found violating the ethics outlined in the Foreign Exchange Code would face sanctions.
Cardoso also criticized what he described as an era of “unprecedented ways and means of financing,” which, according to him, had negatively impacted the economy by driving high inflation and currency depreciation.
The Foreign Exchange Code serves as a regulatory framework for the banking industry, aimed at ensuring ethical conduct among dealers in Nigeria’s forex market.
Addressing the impact of the Electronic Foreign Exchange Matching System, launched in December 2024, Cardoso assured that the intervention had improved market transparency and efficiency. He noted that the naira had appreciated from N1,663 per dollar in December 2024 to N1,536 as of January 27, 2025.
Reaffirming the CBN’s commitment to exchange rate stability, he highlighted that Nigeria’s external reserves had risen to $40.7 billion as of December 2024.