The Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, has urged the Central Bank of Nigeria to allow companies affected by the unresolved $2.4bn matured foreign exchange forward contracts to present documentary evidence of their eligibility.
In a statement on Wednesday, Yusuf said fairness requires the CBN to invite the affected firms to explain their positions and clarify discrepancies.
He said, “I think it is only fair for the CBN to look into their complaints because initially, what the CBN said was that there was a verification exercise that was done before the conclusion that the forwards that were cleared were the ones that were properly verified and that those that were not cleared, according to the CBN, were not properly verified.
“But the argument is that if there was any issue with those that were not cleared, those companies were not invited to defend themselves or to offer further explanations or shed light so that they can convince those who are undertaking the verification exercise. So, to that extent, we can argue that they (the CBN) have not been fair to the companies whose outstanding obligations were not paid.”
Yusuf further called on the CBN to set up a verification committee to reassess the claims fairly, adding that some firms may still not qualify, but many would be able to validate their contracts.
“In the spirit of fairness, the Central Bank (of Nigeria) needs to invite those companies, let them come forward with documents to convince or otherwise the CBN or any other verification authority or committee that they have set up to justify their claims of these obligations,” the economist remarked.
The $2.4bn in question is part of a larger $7bn foreign exchange forward contract backlog. In February 2024, CBN Governor Olayemi Cardoso stated that the unresolved portion had issues such as a lack of valid import documents.
Meanwhile, the Manufacturers Association of Nigeria and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture have described the non-clearance of the outstanding FX contracts as a breach of agreement, warning that it has worsened currency risk for businesses, led to severe financial losses, and caused operational disruptions.
Both groups said the CBN’s refusal to clear the contracts has put manufacturers under intense financial strain, as banks continue to charge dollar obligations alongside naira-based charges, including an interest rate of 35 per cent on related credit facilities.
Many businesses had secured loans from deposit money banks to finance their trade operations based on the forward contracts allocated by the CBN, industry leaders asserted.
For nearly two years since President Bola Tinubu assumed office, affected business owners have expressed frustration over the CBN’s failure to honour matured FX contracts.
They have repeatedly urged President Tinubu and the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, to intervene, rescue manufacturers from further losses, and ensure business stability, productivity, and job security in Nigeria.
