Dr Olayemi Cardoso, the governor of the Central Bank of Nigeria, unveiled a startling revelation regarding the $7 billion foreign exchange backlog inherited upon taking office.
Cardoso in an interview on Arise TV disclosed that a forensic audit by Deloitte management consultants exposed approximately $2.4 billion linked to non-existing entities, absence of import documents, and various infractions.
“Approximately, $7 billion was what we were told that the obligations were,” Cardoso stated during the interview, acknowledging the challenges faced in settling these obligations with limited resources. However, as the audit progressed, suspicions arose, leading to a deeper examination of the transactions’ validity.
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The findings of the forensic audit were nothing short of surprising. Cardoso highlighted, “We discovered that of the roughly $7 billion, about $2.4 billion had issues. We believed that they had no business being there.” The infractions ranged from the absence of valid import documents to entities that didn’t exist, and instances where parties received more foreign exchange than requested.
When questioned about the course of action regarding these contentious transactions, Cardoso asserted, “We are not paying if you don’t qualify.” This unequivocal stance underscores the commitment of the Central Bank of Nigeria to address the irregularities uncovered and uphold the integrity of foreign exchange transactions.
The revelation adds a new layer to the ongoing discourse surrounding the volatility in the currency market, shedding light on the magnitude of the challenges faced by the apex bank in rectifying the inherited forex backlog.