Additional $500m Injected by CBN to Clear FX Backlog in Nigeria

In a move to address the persistent backlog of verified foreign exchange (FX) transactions, the Central Bank of Nigeria (CBN) has injected an additional $500 million into the market.

This comes just a week after the bank infused approximately $2 billion to settle outstanding commitments across the manufacturing, aviation, and petroleum sectors.

Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, made this announcement in Abuja on Monday, January 29.

She reiterated the bank’s commitment to settling all legitimate forex backlogs within a short time frame, stating, “The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.”

The move is part of a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

According to the CBN spokesperson, this strategy focuses on addressing fundamental issues that have hindered the effective operation of the Nigerian forex markets over the years.

This additional injection of $500 million is a clear indication of the CBN’s determination to resolve the backlog issue swiftly and effectively.

The injection is expected to boost economic activities in the country and cater to some of the FX demand of manufacturers that want to import plants and machinery, raw materials, and agriculture equipment.

As the Nigerian economy continues to recover from the challenges of the past, the CBN’s proactive approach to addressing the backlog issue is a positive step towards ensuring a stable and prosperous future for the nation.