Nigeria’s central bank said it plans to clear a foreign-exchange backlog estimated at about $5 billion within a short space of time as it seeks to attract investment back into the economy and reduce pressure on the naira, which hit a fresh low.
The lender “released $500 million to various sectors,” of the economy almost two weeks after paying about $2 billion to settle outstanding commitments across industries including manufacturing, aviation and petroleum, it said in an emailed statement on Monday.
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The bank intends to clear all the backlogs “within a short time,” and resolve “fundamental issues that have hindered the effective operation of the Nigerian foreign-exchange markets,” it said.
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The backlog has made Africa’s biggest-oil producer unattractive to foreign investors as it makes it difficult to repatriate earnings due to the acute dollar shortage. Earlier this month foreign airlines in Nigeria threatened to strike unless the government allowed them to repatriate their funds.
