The Central Bank of Nigeria (CBN) says it has released $500 million to various sectors to address the backlog of verified foreign exchange transactions.

Hakama Sidi-Ali, CBN’s acting director of the corporate communications department, said this in a statement on Monday in Abuja.

According to Ms Sidi-Ali, this comes barely a week after the apex bank paid approximately $2.0 billion to settle outstanding commitments across the manufacturing, aviation, and petroleum sectors.

She said the CBN management was committed to settling all legitimate foreign exchange backlogs within a short time frame.

Ms Sidi-Ali said the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long terms.

“As the governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she said.

Ms Sidi-Ali said the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities.

She expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.

The CBN spokesperson urged all participants in the market to play by the rules, adding that transparency in the market would enable the fair determination of exchange rates.

Over the past few months, the CBN has released various sums to clear the backlog of foreign exchange liabilities.

(NAN)