CBN Governor Opens Up On Multiple Illegal Practices Discovered During FX Backlog Verification
- The central bank governor Olayemi Cardoso has said that the year-long FX verification uncovered a high level of unethical practices
- Cardoso warned that with the FX code now in place, any repeat of such practices will attract swift sanctions
- The governor revealed when payment of the $7 billion Foreign Exchange obligations will commence
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso has opened up on findings from the Foreign Exchange backlog verification process.
Mr. Cardoso noted that the process which took over 12 months, revealed high level of illegal and unethical practices in the FX backlog.
The CBN boss noted that verification is now almost complete, and the bank is set to commence payment of the outstanding foreign exchange backlog.
Cardoso said this at the event to launch the Foreign Exchange Code in Abuja.
Source: Twitter
He stated;
“The $7bn of FX backlogs that has taken over 12 months to verify has led to the discovery of multiple unethical and even illegal practices that we should not be proud of as a nation.”
He warned that with the launch of the new code, all unethical practices from banks or financial institutions would immediately meet with stiff sanctions, the Vanguard reports.
CBN launches FX code
Recall that the Central Bank of Nigeria recently launched the Forex Code and directed the FX market participants to submit compliance reports before the end of January 2025.
Speaking at the launch, Cardoso explained that the FX code will end all opaque practices and distortions of the system for personal gains. It will also engineer a new FX system driven by fair market principles.
Cardoso warns against unethical practices
The Apex bank boss advised bank management and board chairmen to ensure compliance with the new FX Code and ensure they provide the necessary leadership and transparent dealings with the authorized dealers.
He asserted;
“Unethical behaviours and systemic abuses – whether by those with privileged access or by complicit participants – eroded public trust and harmed our economy. We will not tolerate any attempts to revert to those practices. Any individual or institution that violates the FX Code will face swift and decisive sanctions.”
He emphasized that CBN has gone past the era where underhand practices ruled the foreign exchange markets at the expense of the Nigerian economy, and a few people hit it big overnight through unethical dealings.
Mr Olayemi Cardoso also revealed that Nigeria’s external reserves grew to $40.68 billion at the end of 2024, thanks to the several reforms introduced by the bank during the year.
CBN set to pay FX backlog
In related news, Legit.ng reported that the CBN was set to commence payment of the foreign exchange backlog.
The CBN Governor announced that the verification was still in progress, and payment would commence once completed.
He noted that the verification process for the $7 billion backlog had dragged on for over 12 months, but the bank was finally wrapping it up and ready to clear the legacy debts.
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Source: Legit.ng
