Nigeria’s central bank has taken decisive action over the past three months, settling nearly $2 billion in overdue foreign exchange forwards to address a mounting backlog of dollars. Despite these efforts, the nation’s currency, the naira, remains ensnared by persistent forex shortages.

With approximately $7 billion in matured forex forwards causing anxiety among investors, the Central Bank of Nigeria (CBN) has committed to fulfilling these obligations to instill confidence in the foreign exchange market. Acting spokesperson Hakama Sadi Ali emphasized the CBN’s dedication, stating, “In the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost USD 2 billion.”

Nigeria’s economic challenges are exacerbated by dwindling oil production, which constitutes over 90% of the country’s dollar inflows. Ali revealed that the CBN disbursed $61.64 million to foreign airlines grappling with currency conversion issues, addressing a portion of the more than $700 million owed to them as of November.

“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate,” Ali asserted. President Bola Tinubu has echoed these sentiments, pledging to bolster foreign currency inflows through initiatives such as attracting new investments, increasing oil production, and reforming the foreign exchange market. The nation is at a critical juncture, and these strategic moves aim to pave the way for a more stable and prosperous economic future.

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