About $2.4bn out of the claimed backlog of $7bn forex claims were fictitious, the Deputy Governor of Corporate Services at the Central Bank of Nigeria, Mohammed Bello, has said.
He made this statement during the 2024 Law Week event of the Nigerian Bar Association at Garki Branch in Abuja on Monday.
Bello disclosed that, upon assumption of office, there were numerous demands for clearance of outstanding forex obligations.
He added that this necessitated a comprehensive audit of the claims received to determine the genuineness or otherwise of the claims.
He said, “Following the completion of the audit, we discovered that about $2.4bn out of the claimed backlog of $7bn were fictitious. The bank thus took steps to clear the authentic forex backlog that has aided the stabilisation of the naira.
“It is imperative to note further that before this settlement, major foreign airlines operating in the country blocked their low inventory seats due to their inability to repatriate trapped FX inflow.
“It is gratifying to add that the clearing of FX backlog for airlines led to the release of cheaper seats to Nigerians, thereby ameliorating the cost of airfares and reducing the demand for FX and as a consequence, the pressure on the naira.”
He added that “the resultant effects of some of these measures are that, this month saw the naira emerge as the best-performing currency globally, which was supported by the bullish sentiments of leading international investment institutions, and the FX market experiencing robust activities with turnover reaching levels not attained in over seven years”.
He noted that policies and measures that were contractionary in nature were adopted to reduce cash in circulation with the hope of tackling the rising inflation rate in the country.
He said the issuance of new guidelines on bureau de change and licence revocation of over 4,000 BDCs, among others, was adopted to ensure orderliness in that space.
The National Chairman of the All Progressives Congress, Alhaji Umar Ganduje, speaking at the occasion, hailed the ruling party and President Bola Tinubu’s administration for taking the right steps in reforming the nation.
The former Kano State governor said the party was already making giant strides in the direction of bringing the needed reforms, especially in the areas of economy, security and policy, capable of turning around the fortune of the country.
He said, “The APC, of course, is making a difference and if you look at the steps taken by Mr President so far, especially about the economy, where he is reforming the Central Bank of Nigeria and also in terms of curtailing all forms of insecurity in the country. The President is also keen on building a strong institution. So, APC is on course as far as reforming the system.”
The Branch Chairman of NBA, Obioma Ezenwobodo, said the path and record of the branch had been one of fulfilling accomplishments and an undying passion to make a difference and positively impact members of the branch and society.
SOURCE: PUNCHNG
