Central Bank of Nigeria (CBN) Governor Yemi Cardoso has revealed that law enforcement agencies are investigating foreign exchange forwards valued at around $2.4 billion, deemed ineligible for payment. This disclosure follows a recent Monetary Policy Committee (MPC) meeting in Abuja.
During the meeting, Cardoso highlighted the meticulous forensic audit conducted on these transactions, uncovering numerous discrepancies that rendered them invalid. Deloitte management consultants were engaged to conduct a comprehensive analysis, revealing transactions that failed to meet validation criteria, lacked proper documentation, or were outright illegal.
Addressing stakeholder concerns about potential backlogs, Cardoso assured that the market remains open and transparent for addressing outstanding contractual obligations. He emphasized the CBN's commitment to maintaining price stability and fighting inflation.
To this end, the MPC announced a significant hike in the benchmark interest rate to 24.75 percent, accompanied by adjustments to reserve requirements for banks, aiming to tighten control over the money supply and stabilize prices. The committee also 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 emphasized the need to foster competition and transparency. He criticized the "oligopolistic nature of restrictions on dairy imports" and advocated for an open and inclusive foreign exchange market. He also clarified the CBN's limited role in cryptocurrency regulation, noting that it falls under the purview of the Security and Exchange Commission (SEC).
