The Central Bank of Nigeria (CBN) has announced that all valid Foreign Exchange (FX) backlogs owed various sectors of the economy have been settled.

The FX settlement fulfilled a key pledge of the CBN governor, Mr. Olayemi Cardoso, to process an inherited backlog of $7 billion in outstanding liabilities.

This came even as the naira, yesterday, continued to appreciate both at the official and parallel markets, posting significant one-day gains.

The local currency gained N1, 490/$1 at the parallel market, compared to N1, 590 recorded on Tuesday, indicating a N100- gain in one day.

Similarly, at the official Nigerian Autonomous Foreign Exchange Market (NAFEM) the naira closed yesterday at N1, 492.61 to the dollar, representing a N67.96 gain compared to N1, 560.57 on Tuesday.

CBN acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, disclosed that the bank had defrayed all FX indebtedness, in a statement sent to Nationwide Reports.

Ali said the apex bank recently concluded the payment of $1.5 billion to settle obligations to bank customers, effectively offsetting the residual balance of the FX backlog and disclosed that independent auditors from Deloitte Consulting meticulously assessed these transactions to ensure that only legitimate claims were honoured.

Ali added that any invalid transactions were promptly referred to the relevant authorities for further scrutiny.

Cardoso had recently reassured investors, “We made clearing the FX backlog a priority to restore credibility and confidence in the Nigerian economy.

“It was important that we go through an independent and credible process that would determine the authenticity of those obligations, and, at this point, I can tell you that we have now cleared all genuine, verifiable transactions.

“This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us.”

The central bank also reinforced its determination to push through ongoing plans to recapitalise Nigerian banks, and said the last exercise was conducted in 2005.

In a presentation yesterday at the CITI- CEEMA Macro Conference in London, CBN Deputy Governor, Economic Policy Directorate, Mr. Muhammad Sani Abdullahi, explained that the move was part of measures to ensure banking system stability.

Abdullahi said the planned consolidation sought to support the proposed targeted $I trillion-economy to align with current dynamics, support monetary policy transmission, enforce risk-based supervision to ensure that Nigerian banks remained safe and sound, as well as ensure dynamic macroeconomic and banking industry stress testing to assess system vulnerabilities and risk in the banking system.

Abdullahi also said exchange rate volatility had moderated, and the spread narrowed to N222.24/$, from N662.59/$ post interventions. He added that FX rates depreciated by 10.32 per cent on March 8, 2024, where it closed at N/$1,625.23 compared with N/$1,473.26 on February 13, 2024.