Nigeria clears $2bn forex backlog of 14 banks, pays airlines

Maureen Aguta

The Central Bank of Nigeria (CBN) said it had cleared the foreign-exchange backlogs of 14 banks and begun settlements with international airlines.

In a statement Wednesday it said that it had paid about $2 billion across sectors including manufacturing, aviation and petroleum, and that it will continue to settle what it termed “the legitimate foreign-exchange backlog.”

Foreign airlines have threatened to strike unless the government allows them to repatriate their earnings trapped in the West African nation that’s been grappling with an acute dollar shortage.

Nigeria eased its foreign exchange policies last year but still operates an official exchange rate and provides dollars via the central bank to customers at that level. However, a lack of dollars in the domestic market means there’s a backlog of demand from companies who want to convert naira into the US currency to repatriate profits.

Finance Minister Wale Edun told Bloomberg Television earlier on Wednesday that the Central Bank puts the current backlog at about $5 billion. He said it is making regular efforts to pay it down.