Nigeria’s Organised Private Sector (OPSN) members are exploring legal action against select commercial banks for failing to process their long-pending foreign currency exchange requests. Allegations include the banks improperly holding foreign currencies, contributing to severe business losses. Predictions suggest that this lawsuit could lead to stricter regulations and increased scrutiny of Nigeria’s financial sector.
OPSN’s potential lawsuit comes following an appeal for greater examination of the Central Bank of Nigeria’s (CBN) alleged backlog in foreign exchange payments—a contradiction to the CBN’s claim of settling all forex backlog. A comprehensive review of the CBN’s financial documents pointed to massive delays in forex payments, challenging the bank’s assurances of full settlement.
Despite intervention talks by the Minister of Industry, Trade, and Investment with major stakeholders, doubts still linger about the CBN’s settlement process. This perceived lack of transparency has led to skepticism about the system’s reliability and potency, and its impact on local and national economies.
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Lawsuit looms over Nigerian forex discrepancies
Sidi Ali, the Acting Director of Corporate Communications at the CBN, reaffirmed the successful discharge of all forex backlogs. She also underscored the efficacy of the forex policy, citing the impressive rise in Nigeria’s external reserves, which as of March 7, 2024, stood at a robust $34.11 billion – an increase of $993 million.
CBN’s Governor, Mr. Olayemi Cardoso, emphasized that settling the forex backlog is part of a broader strategy to stabilize the exchange rate and inspire confidence in the banking sector and economy at large. He underscored the bank’s commitment to providing a conducive business environment powered by judicious macroeconomic management and sturdy financial infrastructure.
However, Segun Kuti-George, National Vice President of the Nigerian Association of Small Scale Industrialists, contested these claims, highlighting several businesses laden with funds stuck in banks. Kuti-George criticized the CBN’s transparency lapses and inadequate communication. He argued that such shortcomings had caused not just a loss of faith in the financial institution but also substantially hindered the growth of small-scale enterprises across Nigeria.
