Nigeria Central Bank clears $2 billion forex backlog - Report

Nigeria’s central bank paid about $2 billion of the amount it owed lenders to settle matured foreign-exchange contracts, Thisday newspaper reported.

The central bank made the overdue payments over three months, and they include $61.64 million to settle part of outstanding liabilities owed to foreign airlines with operations in the country, the Lagos-based newspaper reported, citing the bank.

Government officials estimate the amount of overdue forward payments at about $6.7 billion. This day puts the figure between $7 billion and $10 billion, without citing sources. The amount includes at least $744 million owed to foreign airlines as of March last year, according to the International Air Transport Association.

The inability to clear the backlog has weighed on the naira, which has lost more than 50% of its value since it was allowed to trade more freely against the dollar in June last year.

The payment signals the central bank’s commitment to clearing all overdue obligations to reduce the pressure on the naira, according to the newspaper.