The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced the completion of forensic verification for pending foreign exchange backlogs, with payments set to begin soon.
Speaking at the launch of the Foreign Exchange Code, Cardoso highlighted that it took over a year to clear the $7 billion foreign exchange backlog in 2024, a legacy issue that the CBN announced as resolved in March of the same year.
He emphasized the end of the multiple exchange rate regime, which previously benefited a select few, warning that deposit money banks that violate the ethics outlined in the Foreign Exchange Code will face sanctions.
Cardoso also criticized past practices of excessive ways and means financing, which he said contributed to economic instability, high inflation, and currency depreciation.
The Foreign Exchange Code aims to foster ethical conduct among dealers in Nigeria’s foreign exchange market. Additionally, Cardoso praised the Electronic Foreign Exchange Matching System introduced in December 2024, noting its positive impact on market transparency and efficiency. This intervention has seen the naira appreciate from N1,663 to $1 in December 2024 to N1,536 as of January 27, 2025.
Reaffirming the CBN’s commitment to exchange rate stability, Cardoso revealed that Nigeria’s external reserves grew to $40.7 billion as of December 2024.