Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso yesterday said that the apex bank will soon commence final settlements of the outstanding amount from the $7 billion foreign exchange obligation backlog.
Cardoso at the launch of the new Foreign Exchange, FX Code in Abuja, disclosing that the forensic verification process is now near complete, and final settlements will be processed
Noting the high level of unethical and illegal practices discovered during the verification of the FX backlog, Cardoso vowed any bank found to be involved in Foreign Exchange (FX) infractions under the new FX Code would face prompt, swift sanctions.
He added that Board Chairman and management of the bank’s must lead from the front in adhering to the code which provides new principles on ethical transparent FX transactions for Authorised Dealers.
He said the era in which participants undertook unethical practices, taking advantage of the system, the Nigerian economy and Nigerians was over.
He said, “We must not forget where we are coming from. The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, severely undermined market integrity.
“As an example, the $7bn of FX backlogs that has taken over 12 months to verify has led to the discovery of multiple unethical and even illegal practices that we should not be proud of as a nation.
“The forensic verification process is now near complete, and final settlements will be processed accordingly.
“Similarly, the period of unprecedented ways-and-means-financing inflicted significant damage on our economy, contributing to inflation, currency depreciation, and eroded public confidence.
“These practices must never return. The FX Code is a firm rejection of such distortions and an equally firm commitment to a future defined by fairness, trust and market-driven principles.
“Let me reiterate: the era of opaque practices is over. We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets.
“The FX Code is a binding commitment to accountability and transparency and we must all play our part.”
No longer business as usual
Cardoso vowed it would no longer be business as usual, adding, “The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in our foreign exchange market. It is a firm signal that business-as-usual will no longer suffice.
“Let us be clear: the system itself played a key role in the challenges of the past. Unethical behaviours and systemic abuses – whether by those with privileged access or by complicit participants – eroded public trust and harmed our economy.
“We will not tolerate any attempts to revert to those practices. Any individual or institution that violates the FX Code will face swift and decisive sanctions.
Reserves at $40.68
He disclosed that the nation’s external reserves had grown by 12.74%, reaching $40.68 billion at the end of 2024, a development, he said, that reflected the effectiveness of reforms aimed at paying off legacy FX obligations and growing reserves organically.
…It’s a call to action — Alawuba
Also speaking at the launch of the Code, Group Managing Director (GMD) of the United Bank for Africa (UBA), Oliver Alawuba, described the launch of the Code as, “a milestone that demonstrates our collective resolve to build a foreign exchange market rooted in transparency, professionalism, and ethical conduct.”
According to him, “These initiatives have been pivotal in stabilizing the FX market, restoring investor confidence, and ensuring a more sustainable and resilient financial system. From policy innovations to strategic interventions, the CBN has proven itself a cornerstone of Nigeria’s economic stability.
“The introduction of the Nigeria FX Code is yet another bold and visionary step. This initiative not only complements other notable reforms of the CBN, but also sets a new benchmark for accountability and integrity in the FX market. By embedding global best practices and fostering a culture of trust and equity, the Code will enhance market efficiency, attract greater participation, and elevate Nigeria’s standing in the global financial landscape.
“This launch is not just the unveiling of a framework – it is a call to action for all stakeholders to uphold the principles of fairness, ethical behaviour, and professionalism. The strength of any financial market lies in the integrity of its participants, and with the Nigeria FX Code, we now have a unified platform to reinforce this commitment.”
