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Nigeria’s Central Bank Cleared the Entire Foreign Exchange Forwards Liability of 14 Banks

Africa’s biggest economy has about $7 billion in forex forwards that have matured, a major concern for investors as foreign currency shortages continue to weigh down the naira currency, despite assurances by the Central Bank of Nigeria (CBN) to clear the backlog. So far, about $2 billion of the backlog across sectors such as manufacturing, aviation, and petroleum have been paid, CBN spokesperson Hakama Sidi Ali said in a statement. Ali said an independent forensic review of the backlog commissioned by the central bank revealed “grave infractions, gross abuse, and significant non-compliance with market regulations.”