Invalidation of $2.4Bn forward contracts by the CBN; how many more manufacturers will be forced out of business?

Imagine sailing on a calm sea, charts meticulously plotted, course set for prosperity. Suddenly, a colossal wave looms on the horizon, threatening to engulf your vessel and everything you hold dear.

This is the chilling reality facing Nigerian businesses, investors, manufacturers and citizens alike, thanks to the Central Bank of Nigeria’s (CBN) recent invalidation of $2.4 billion worth of forward contracts.

The governor of the Central Bank of Nigeria, Dr Olayemi Cardoso, during an interview on Arise TV, on February, 5th 2024 addressed concerns about the recent volatility in the currency market and said that about $2.4bn of the $7bn foreign exchange backlog he met when he got into office were from non-existing entities, requests without import documents among other infractions.