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The Central Bank of Nigeria clears Forex backlogs for 14 banks and addresses airlines’ concerns

In a recent announcement, Nigeria’s central bank declared the successful resolution of foreign-exchange backlogs for 14 banks and initiated settlements with international airlines.

The statement, issued on Wednesday, revealed that approximately $2 billion had been disbursed across various sectors, including manufacturing, aviation, and petroleum.

Furthermore, the central bank affirmed its commitment to addressing what it referred to as “the legitimate foreign-exchange backlog.”

This development comes amid growing tensions with foreign airlines, which had previously issued threats of striking unless the Nigerian government allowed them to repatriate earnings held in the country grappling with a severe dollar shortage.

Despite easing foreign exchange policies last year, Nigeria continues to maintain an official exchange rate, providing dollars through the central bank to customers at that specified level.

However, the scarcity of dollars in the domestic market has led to a backlog of demand from companies seeking to convert naira into the US currency for profit repatriation.

According to Wale Edun, Finance Minister, the central bank estimates the current backlog to be around $5 billion.