CBN pays $2bn to clear forex backlog, to sanction defaulters

The Central Bank of Nigeria (CBN) says it paid approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum in its bid to clear the backlog of outstanding foreign exchange liabilities.

The apex bank said it has also cleared up the entire liability of 14 banks and started settlements with foreign airlines.

A CBN spokesperson, Hakama Sidi Ali, disclosed this in Abuja on Wednesday, explaining that the bank had commissioned an independent forensic review by a reputable firm.

She also disclosed that payment of the forex backlog for qualified transactions had commenced.

The CBN spokesperson, however, noted that the review revealed grave infractions, gross abuse, and significant non-compliance with market regulations, and appropriate sanctions would be enforced in collaboration with relevant agencies.

Ali stressed the CBN’s resolve to sanitise the financial services sector and foster trust among all market participants, as well as internal and external stakeholders, in the Nigerian economy.

Nevertheless, she said the CBN would continue to settle the legitimate foreign exchange backlog as it has consistently been doing in the last three months.

Last week, the CBN announced the disbursement of approximately US $61.64 million to foreign airlines through various banks.

Ali said this initiative is part of the CBN’s efforts to decrease its remaining liability to the airlines.

He had revealed that three presidential candidates in the 2023 general elections, Atiku Abubakar of the People’s Democratic Party (PDP), Peter Obi Labour Party (LP) and Rabiu Kwankwaso of the New Nigeria People’s Party (NNPP), have agreed to form a formidable party that would sack the APC in 2027.

According to him, after having a conversation with the three political heavyweights, he agreed to form a mega party that would take over the country’s leadership, saying Nigerians need people who would make sacrifices for the development of the nation.

While Duru described the plan in negative terms, the National Publicity Secretary of the APC, Felix Morka, described Utomi as a serial promoter of mega parties which never materialize.

But Utomi in a statement expressed optimism that the opposition will rescue Nigeria.

He said, “I read with interest the response by Nze Chidi Duru to speculations about what has been called a merger of opposition parties. That response itself is much evidence of progress. That a cultured person like Duru reacted rather than the typical Joseph Goebbels propaganda abusiveness the APC is known for shows rational public conversation may become possible in the Nigerian public sphere. Juergen Habermas would have smiled at that.

“To clarify, what I have been speaking to is not the hurried coupling together of interests to create a platform for machine politics like the Daley machine in Chicago to obtain desired elections outcomes and foist state capture on a wearied people. That is what came out of the 2014 effort that birthed the APC. I was witness to it and have written the first book of a trilogy on that national tragedy.

“What I have been speaking to is the founding of a real political party. This is something that has eluded this fourth republic. Our efforts begin with ideation that will birth a world view of this party. Some call it ideology. Then we will develop shared values around the approach to a people’s centered political party.

“Next will be a structure for community based solutions to the personal troubles of people and flow of what the people want into the policy process. When agreement is reached on National Strategy which from my agenda setting position will be moving the country away from elite rent seeking and mindless corruption to production on value chains erected on our regional factor endowments in which we have latent comparative advantage.

“The major issues we adopt such as constitutional reforms and the emphasizing the principle of subsidiarity and bottom up people’s entrepreneurial capitalism will be agreed to before people sign up for leadership roles.

Can old gladiators I have called out previously have a role. If they do a mea culpa and accept that this is about Nigeria and not themselves there will be room for embrace. I like to point to the Malaysia feuds between Dr Mahathir Mohammed and Anwar Ibrahim who was his Deputy in 1997.

“This led to imprisonment and much bad blood. But when a very bad and corrupt government came up decades later Mahathir Mohammed as a nonagenarian came out of retirement, founded a new party and in partnership with Anwar Ibrahim and won the election against the incumbent Najib Razak. We are confident that through our efforts in this initiative Nigeria will rise up again.”