Cardoso To Suspend Intervention Loans, Clear Dollar Debts

The new Governor of the Central Bank of Nigeria, Olayemi Cardoso, has said he will prioritise clearing the apex bank’s backlog of unsettled foreign exchange obligations in the near term.

He said this on Tuesday during the screening session of members of the Senate.

Cardoso promises to enhance transparency, fix corporate governance, and ensure confidence in the autonomy and integrity of the bank.

BREAKING: Senate confirms nomination of Yemi Cardoso as CBN governor

“We need to promptly find a way to take care of that. It would be naive for us to expect that we’ll be making too much progress if we’re not able to handle that side of the foreign exchange market,” he said.

The new CBN governor said he would maintain price stability, revert to evidence-based monetary policies, and discontinue his predecessor’s unorthodox monetary policies to bolster the country’s naira currency.

Cardoso’s screening as the nation grapples with falling economic indices with the naira nearing 1,000/$ at the parallel market.

The official market closed with the naira-to-dollar exchange rate settling at N755.08/$1 on Tuesday, according to the foreign exchange data released by the FMDQ Exchange

According to Cardoso, the immediate plan to stabilise the naira will be for the apex bank to settle existing financial obligations and make “transparent rules.”

Describing how to address what he termed as an ‘operational issue’, he said, “Right now, we have a situation where we are aware that there are unsettled obligations by the CBN. Whether it is $4bn, $5bn or $7bn, I don’t know but definitely the immediate priority will be to verify the authenticity and extent of what is owed.

“Number two, apart from the operational issue, there is one that is system related that involves ensuring that we come up with rules that are open, transparent that any of the players in that area understands. We can’t expect foreign investors and portfolio investors to come; we can’t expect them if there is no open, transparent system that everyone understands.

“In setting up those guidelines one will carry the relevant stakeholders along and the comment was made earlier that one should be ready to engage everybody and hear views. Those two things, though they may seem simple, will go a long way to easing up the restrictions we are having on people (investors) that want to come in.”

The immediate past acting CBN Governor, Folashodun Shonubi, on September 6, 2023, said the apex bank had concluded negotiation on dollar debts with commercial banks, disclosing that all forex exchange backlogs would be cleared within one to two weeks.


Discover more from LN247

Subscribe to get the latest posts sent to your email.

Advertisement

Most Popular This Week

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

More from Author

Advertisement

Read Now

What A 2% VAT Increase Will Mean For An Average South African

The recent proposal to raise South Africa's Value-Added Tax (VAT) by 2% has ignited widespread debate among policymakers, economists, and citizens. To understand the potential effects of such an increase on the average South African, it's essential to explore the history of VAT in the country, its...

Nigeria’s Money Supply Hits N110.97 Trillion

Nigeria's money supply (M2) surged by 18.3% year-on-year, reaching N110.97 trillion in January 2025, compared to N93.77 trillion in January 2024. This growth was largely fueled by increased savings in various investment instruments. According to the Central Bank of Nigeria (CBN), the rise in money supply was primarily...

Naira Strengthens to 1,494.03/$ at Official and Parallel Market

The naira gained value, reaching 1,494.03/$ at the official market on Thursday, according to data from FMDQ Securities Exchange Limited. In parallel, it appreciated at the black market, rising to 1,510.00/$, narrowing the gap between the two markets to 15.5/$. The narrowing difference in exchange rates between the...

Discover more from LN247

Subscribe now to keep reading and get access to the full archive.

Continue reading