The Central Bank of Nigeria (CBN) has officially completed its forensic audit of undelivered forward foreign exchange (FX) transactions and has refunded the value of all unfulfilled and unvalidated deals to banks in naira. This significant development was detailed in a letter dated August 4, 2025, signed by Okey Umeano, the Acting Director of the Financial Markets Department, and addressed to all authorized dealer banks.
According to the letter obtained by OBSERVERS TIMSS , the audit was initiated to address the backlog of failed forward FX commitments and has now been “successfully concluded.” The CBN confirmed that all validated transactions have been settled, and the local currency equivalent of outstanding and unverified transactions has been returned to the respective banks.
“Following the completion of the audit, the payment of all validated forward transactions has been effected,” the circular stated. Furthermore, the CBN emphasized that with this audit’s conclusion, the issue of undelivered forward transactions should now be considered resolved. “Consequently, the matter of undelivered forward transactions is hereby considered concluded and closed,” the letter read.
The CBN also expressed gratitude for the cooperation of stakeholders throughout the audit process.
The refund process marks an important step in the CBN’s efforts to restore confidence in Nigeria’s foreign exchange market. The accumulation of undelivered forward transactions during a period of FX illiquidity had raised concerns among foreign investors and exporters regarding Nigeria’s payment credibility.
The decision to refund in naira, rather than US dollars, reflects the CBN’s cautious management of its FX liabilities amid limited external reserves. This move follows earlier efforts by the bank to clear FX backlogs owed to airlines, foreign investors, and other counterparties to stabilize the FX market and encourage inflows.
Earlier in March 2024, the CBN announced the complete clearance of the valid foreign exchange backlog. CBN Governor Olayemi Cardoso had disclosed in February that approximately $2.4 billion of the reported $7 billion FX liabilities of the federal government were deemed invalid for settlement following a forensic audit by Deloitte Management Consultant. Deloitte’s independent auditors were tasked with closely examining these transactions to ensure the settlement of only legitimate claims while referring questionable transactions to the relevant authorities.
