The Central Bank of Nigeria (CBN) says it has completed a major forensic audit into the country’s foreign exchange transactions under the Retail Secondary Market Intervention Sales (RSMIS) scheme, declaring that the matter is now closed.
This follows an 18-month investigation by the CBN in collaboration with authorised dealer banks and the global audit firm Deloitte, which reviewed all outstanding and undelivered FX forward contracts.
FX forwards are contracts that allow businesses or individuals to lock in a specific exchange rate today for the purchase or sale of foreign currency at a future date. These contracts help protect against unexpected swings in exchange rates. In Nigeria, such contracts are used by importers, exporters, and other players in the foreign exchange market to manage currency risks.
In a statement published on its website, the apex bank said it will no longer entertain any review or reopening of the audit process, describing such a move as both inefficient and impractical.
According to the CBN “the findings have therefore met procedural fairness standards. The case of undelivered forward contracts is now concluded and closed,” it added.
The CBN stated that the audit was based on a clear and transparent mandate. Deloitte, acting as an independent forensic expert, conducted a review of the forward contracts in question.
The bank explained that it commissioned the audit to check the authenticity of all forward contracts that had not been delivered and to verify if they were lawful and followed the terms set by the relevant regulations. The goal, according to the Bank, was to protect Nigeria’s foreign exchange reserves, enforce market discipline, and make sure all players were treated fairly.
The statement stressed that the audit was also in line with the Bank’s legal obligation to ensure that the country’s public financial resources are properly managed. The CBN said it had a duty to act when previous activities may have fallen short of expected standards.
While restating its readiness to settle all valid FX obligations that follow market rules, the CBN advised banks and their customers to ensure their transactions are well documented, follow existing foreign exchange laws, and submit only genuine transactions for settlement.
Furthermore, the apex bank said it is currently weighing appropriate legal action against those found to have broken the rules, based on the audit findings. It said it would be working with law enforcement and other regulatory bodies to take civil, administrative, or even criminal action where necessary.
This audit exercise was first disclosed by the CBN Governor, Mr. Olayemi Cardoso, shortly after he assumed office in 2023.
He had confirmed that Deloitte was hired to undertake a comprehensive forensic review of all FX-related dealings under the RSMIS framework, particularly in relation to undelivered forward contracts that had raised concerns about transparency and accountability in the management of Nigeria’s foreign exchange market.
