The Central Bank of Nigeria has disclosed that it is considering legal actions against the violators of the foreign exchange forward contracts after the completion of a forensic audit of those contracts.
CBN indicated this on Thursday in a document titled ‘Frequently Asked Questions on the Settlement of Undelivered Forward Contracts’, published on its website.
“The Central Bank of Nigeria is reviewing appropriate legal action against parties found to have violated applicable rules and regulations, based on the findings of the forensic audit. The Bank will collaborate with law enforcement and regulatory agencies to pursue civil, administrative, or criminal sanctions, as necessary,” said the document.
The CBN Governor, Olayemi Cardoso, had earlier revealed that the apex bank hired Deloitte to conduct a comprehensive forensic audit of all transactions.
In the Retail Secondary Market Intervention Sales, including undelivered forward contracts.
The audit involved reviewing contract documentation and trade confirmations, verifying underlying trade transactions (e.g., import/export documentation, Form M, shipping and Customs records), confirming that contracts complied with applicable CBN circulars and FX market guidelines and ensuring that beneficiaries were genuine and eligible counterparties.
