In an exclusive interview on Arise TV, Dr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), delved into critical issues surrounding foreign exchange stability and monetary policy. His insights shed light on the CBN’s current priorities and strategic actions aimed at bolstering Nigeria’s economy and currency.
Key Points from the Interview:
- Forex Obligations and Audit Findings:
- The CBN inherited a substantial backlog of $7 billion in unpaid forex obligations. To address this, the bank commissioned Deloitte to conduct a forensic audit. The audit revealed that approximately $2.4 billion of the claims had issues.
- Problematic claims included instances where entities lacked valid import documents, non-existent entities received allocations, and some received more forex than requested or without any request.
- CBN has already cleared $2.3 billion of valid claims, including those from airlines. A remaining balance of $2.2 billion is being actively addressed by the CBN.
- Naira Stabilisation and Investor Confidence:
- Despite existing challenges, Dr. Cardoso expressed confidence that the Nigerian currency, the Naira, is undervalued and will stabilise over time.
- Ongoing reforms, such as the circular on the Net Open Position (NOP) of banks and guidelines for international money transfer operators, are expected to enhance stability in the foreign exchange (FX) market.
- Encouragingly, foreign portfolio investors are showing increased interest in the Nigerian market, signalling positive prospects for the economy.
- Addressing Office Overpopulation:
- Dr. Cardoso briefly touched on the issue of office overcrowding within the CBN, emphasising the need for efficient management and resource allocation.
Below is the full interview:
