Several businesses under the Organised Private Sector of Nigeria (OPSN) are mulling over the possibility of taking legal action against commercial banks due to the non-honoring of forex requests that have been pending for an extended period. The OPSN has also urged for a comprehensive audit of the forex backlog payments by the Central Bank of Nigeria (CBN) in light of recent claims made by the apex bank.
The Central Bank of Nigeria (CBN) recently stated that all valid forex backlogs have been settled. However, members of the OPSN dispute this claim, asserting that the settlement process was not transparent and did not prioritise full disclosure. During separate interviews with The Punch, representatives of member associations expressed discontent with the CBN’s handling of the settlement.
Simultaneously, the exchange rate between the Nigerian Naira and the US Dollar witnessed a significant strengthening, closing at N1,431/$ on March 22, 2024. Data from the FMDQOTC, the official platform for determining exchange rates, indicated a 1.52% gain for the Naira at the close of business. This marks the seventh consecutive day of a positive trend and signals an overall increase of over 12% in the Naira’s value within a week. These developments reflect the success of the CBN’s stringent policies, implemented since February, in bolstering the Naira.
In addition to the appreciation in the Naira’s value, the recent moves by the CBN have significantly impacted the forex market and businesses reliant on forex transactions. The OPSN’s contemplation of legal recourse against commercial banks aligns with the broader concerns about forex non-payment and the urgency for a comprehensive review of the CBN’s forex backlog payments.
Given the implications for businesses and the economy at large, the resolution of the issues surrounding forex backlogs and the transparency of the settlement process will be critical in restoring confidence and trust in the forex market. The approaching decisions on potential legal action by OPSN members against commercial banks have the potential to set a significant precedent for the resolution of similar disputes and may lead to a more elucidated framework for forex transactions in Nigeria.
