Governor of the Central Bank of Nigeria (CBN), Mr. Cardoso Olayemi stated on Tuesday, January 28, 2025 that the apex bank will soon start final settlements of the outstanding amount from the $7 billion foreign exchange obligation backlog.

Cardoso said this at the launch of the new Foreign Exchange, FX Code in Abuja, revealing that the forensic verification process is almost done, and final settlements will be processed accordingly.

Speaking about the high level of unethical and illegal practices discovered during the verification of the FX backlog, Cardoso vowed any bank found to be involved in Foreign Exchange (FX) infractions under the new FX Code would face prompt, swift sanctions.

He stated: “We must not forget where we are coming from. The era of multiple exchange rates, which created privileges for a select few at the expense of most Nigerians, severely undermined market integrity.

“As an example, the $7bn of FX backlogs that has taken over 12 months to verify has led to the discovery of multiple unethical and even illegal practices that we should not be proud of as a nation.

“The forensic verification process is now near complete, and final settlements will be processed accordingly.

“Similarly, the period of unprecedented ways-and-means-financing inflicted significant damage on our economy, contributing to inflation, currency depreciation, and eroded public confidence.

“These practices must never return. The FX Code is a firm rejection of such distortions and an equally firm commitment to a future defined by fairness, trust and market-driven principles.

“Board Chairs, Managing Directors, and Chief Compliance Officers – must lead from the front, embedding these standards within your organizations is not optional.

“Let me reiterate: the era of opaque practices is over. We will not hesitate to act against any institution or individual that undermines the integrity of our financial markets.

“The FX Code is a binding commitment to accountability and transparency and we must all play our part.

“The FX Code represents a decisive step forward, setting clear and enforceable standards for ethical conduct, transparency, and good governance in our foreign exchange market. It is a firm signal that business-as-usual will no longer suffice.

“Let us be clear: the system itself played a key role in the challenges of the past. Unethical behaviours and systemic abuses – whether by those with privileged access or by complicit participants – eroded public trust and harmed our economy.

“We will not tolerate any attempts to revert to those practices. Any individual or institution that violates the FX Code will face swift and decisive sanctions."