Global credit rating agency, Fitch, has said Nigeria’s apex bank does not have what it takes to clear forex backlogs.
The agency also said the revenue ratio in the country is a key weakness in its sovereign credit rating.
It was also added that the Nigeria currency could be further heighten by the pressure in the foreign exchange shortage.
‘‘Nigeria’s central bank still lacks the foreign exchange to clear the backlog of demand, and the country’s high interest payment to revenue ratio weighs on its sovereign credit rating.’’
Nonye added that the pressure on the naira could continue due to the country’s forex shortages and high interest rates. She said the gap between the official and parallel rates is already 30%.
She also stated: “We think that the central bank is still very well short of the amount it needs to be able to clear the foreign exchange backlog and also meet the substantial external financing by the private sectors.”
The CBN warned forex defaulters in the country to desist from gross abuse of forex activities and significant non-compliance with market regulations.
The apex bank commissioned an independent forensic review by a reputable firm to look into issues relating to the forex exchange in the country, said by Sidi Ali, the CBN’s actiong director of communication.
She also said the result was grave infractions, gross abuse, and significant non-compliance with market regulations.
The CBN spokesperson added that sanctions will now be enforced in partnership with relevant agencies.