Corporate treasurers in Nigeria have appealed to the Central Bank of Nigeria (CBN) to reconsider its decision to invalidate approximately $2.2 billion worth of foreign exchange forward contracts, a move that has rattled confidence among investors and businesses with dollar obligations.
The CBN’s review, which followed an audit of outstanding FX commitments, reportedly questioned the legitimacy of several contracts entered into under previous administrations. According to Bloomberg, the central bank cited irregularities in documentation and due process as reasons for nullifying some deals.
The Association of Corporate Treasurers of Nigeria (ACTN) said in a statement that the cancellations could trigger “unintended financial distress” for firms reliant on those agreements to manage import costs and foreign-denominated loans. “We urge the central bank to engage stakeholders and adopt a balanced resolution framework to maintain market stability and investor confidence,” the association added.
Market analysts told Financial Times that the issue underscores the lingering volatility in Nigeria’s foreign exchange market, where a backlog of unmet FX demands continues to pressure the naira despite recent policy adjustments.
