CBN begins clearing $7 Billion Foreign Exchange Backlog to Banks

The Central Bank of Nigeria (CBN) has begun clearing the $7 billion outstanding foreign exchange obligation to banks on forward contracts, according to Reuters.

Reuters on Thursday quoting the apex bank’s spokesman, Dr. Isah Abdumumin confirmed the development.

President Tinubu last week during the annual forum of the Nigeria Economic Summit Group had promised that his administration would cleared the foreign exchange forward contract that CBN signed with banks.

Reuters said banking sources confirmed an initial payment of $1 billion had been made to some of the banks by the CBN.

The apex bank spokesman, it said confirmed that 14 banks had so far being paid, but declined to give the amount, or the names of banks.

The news agency, however, said four banks sources said the payment would continue in the next few weeks.

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According to the reports, while a few of the banks were paid the entire amount, others got 80 per cent of the backlogs.

Spokesman of the CBN, Isah Abdulmumin confirmed the development to our correspondent in a chat, saying the clearing of backlog would continue next week.

“The rest would be cleared soonest,” he said in a text message to one of our correspondents.

Daily Trust further learnt that airlines are already heaving a sigh of relief over the development which has seen more than half of their trapped funds cleared.

Foreign airlines have been unable to repatriate over $700m of their ticket funds to their home countries; the development which forced Emirates Airlines to suspend flights to Nigeria.

However, Emirates is said to be targeting next month to resume operations after finalising talks with the federal government on removing the ban on visa and work permit.

The Dubai-based carrier could not be reached yesterday. An enquiry sent to the airline was not responded to as of press time.