The Central Bank of Nigeria (CBN) has allocated US$500 million across different sectors to address outstanding verified foreign exchange transactions, following a recent payment of approximately $2.0 billion to resolve pending commitments in manufacturing, aviation, and petroleum sectors.

Speaking in Abuja on Monday, Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, highlighted the bank’s commitment to swiftly settling all legitimate foreign exchange backlogs. She emphasized that the CBN, under the leadership of Governor Mr. Olayemi Cardoso, is implementing a comprehensive strategy to enhance liquidity in Nigeria’s foreign exchange markets across short, medium, and long-term timelines.

Sidi Ali reiterated the Governor’s focus on addressing underlying issues that have impeded the efficient functioning of Nigeria’s FX markets. She explained that ongoing forex market reforms aim to simplify and standardize exchange rates, promote transparency, and minimize arbitrage opportunities, ultimately fostering a stable exchange rate conducive to investor confidence and foreign investment inflows.

Encouraging market participants to adhere to regulatory guidelines, Sidi Ali underscored the importance of transparency in facilitating fair exchange rate determination, ensuring stability for both businesses and individuals.

The recent allocation adds to the CBN’s ongoing efforts over the past months to clear the backlog of foreign exchange liabilities.