Nigeria’s central bank pays $2 bln to clear FX backlog

Nigeria’s central bank paid about $2 billion of the total amount it owed lenders to settle matured foreign exchange contracts, Reuters reported on Monday.

The bank paid the overdue amounts over three months. Among them was $61.64 million to settle a portion of the outstanding liabilities owed to foreign airlines operating in the country.

According to government officials, there are approximately $6.7 billion worth of outstanding forward payments.

This day places the amount between $7 billion and $10 billion, sources undisclosed.

The International Air Transport Association states that as of March of last year, the sum included at least $744 million owed to foreign airlines.

Since June of last year, when it was granted more freedom to trade against the dollar, the value of the naira has dropped by over 50 per cent due to the inability to clear the backlog.

The payment shows that the central bank is committed to paying off all past-due debts to ease pressure on the naira.