The Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, disclosed that law enforcement agencies are currently probing foreign exchange forward contracts amounting to approximately $2.4 billion
These transactions, as per Cardoso, have been deemed ineligible for payment due to various discrepancies.
The disclosure came after the Monetary Policy Committee (MPC) meeting held in Abuja.
During the meeting, Cardoso shed light on the meticulous forensic audit conducted on these transactions, revealing numerous irregularities that rendered them invalid.
Deloitte management consultants were enlisted to conduct a comprehensive forensic analysis, spanning several months, to scrutinize the legitimacy of these forward-contracted transactions.
The audit process uncovered instances where transactions failed to meet validation criteria, including allocations made without corresponding requests, lack of proper documentation, or outright illegality.
Addressing concerns about potential backlogs among stakeholders, Cardoso assured that the market remains open and transparent for addressing outstanding contractual obligations. However, he reiterated that the CBN has diligently verified and settled recognized backlogs of forward transactions.
Furthermore, Cardoso emphasized the CBN’s commitment to maintaining price stability and fighting inflation.
The MPC announced a significant hike in the benchmark interest rate to 24.75 percent, accompanied by adjustments to reserve requirements for banks, aimed at tightening control over the money supply and stabilizing prices.
Looking ahead, the CBN anticipates a gradual moderation of inflation rates by May, with measures in place to foster economic growth while maintaining price stability.
The committee called for the full implementation of agricultural policies to enhance food supply and urged broader fiscal consolidation to improve tax collection.
Regarding the forex market, Cardoso stressed the need to foster competition and transparency, criticizing the restrictive nature of dairy imports and advocating for an open and inclusive foreign exchange market.
Finally, addressing concerns about cryptocurrency regulation and the Binance scandal, Cardoso clarified the CBN’s role, highlighting collaboration with relevant authorities while noting that cryptocurrency regulation falls under the purview of the Security and Exchange Commission (SEC).
