CBN uncovers $2.4 billion fraud in forex claims

Central Bank of Nigeria (CBN) Governor, Yemi Cardoso, revealed that the apex bank has identified $2.4 billion in invalid forex claims, which are exerting pressure on the naira and causing concerns in the currency market.

Cardoso attributed this discovery to an audit conducted by a consultant hired by the CBN, which exposed numerous dubious transactions.

The CBN Governor disclosed that Deloitte was commissioned by the apex bank to investigate the allegations surrounding foreign exchange, aiming to ascertain the true state of affairs.

According to Cardoso, Deloitte’s assessment unveiled that a substantial portion of the $2.4 billion backlog comprises fictitious claims, with some claimants unable to furnish import documentation.

“We had reasons to believe we needed to take a harder look at these obligations. So we contracted Deloitte management consultants to conduct a forensic audit of all these obligations and to provide us with a clear understanding of what was valid and what was not,” stated Mr. Cardoso.

He further emphasized, “The result that came out of this was startling in a great respect. It was startling. We discovered that of the roughly $7 billion, about $2.4 billion had issues, which we believe had no business being there and the infractions on that ranged from so many things, for example not having valid import documents and in some cases entities that do not exist.”