At the Nigeria Economic Summit NES29 in Abuja, President Bola Tinubu pledged to resolve the foreign exchange contracts backlog issue that has been discouraging investor confidence. He assured that Nigeria will also honor all future foreign exchange contracts.
The Central Bank of Nigeria (CBN) sold forward contracts to numerous Nigerian businesses with promises of dollars at future agreed prices.
However, the CBN has not settled these contracts since February 2023, resulting in a backlog of around $3 billion, with a broader backlog, including foreign investors’ contracts, estimated at about $10 billion.
This has created tight FX liquidity conditions and forced the suspension of several transactions, including school fees and Personal Travel Allowance applications.