The Central Bank of Nigeria (CBN) has concluded its long-awaited forensic audit into undelivered foreign exchange forward contracts and is now preparing to take civil, administrative, or criminal action against individuals and entities found to have breached Nigeria’s forex regulations.
Also, the apex bank has eexpressed optimism about deepening collaboration with the Nigeria Deposit Insurance Corp[oration (NDIC).
This was revealed in a document titled “Frequently Asked Questions (FAQ) on the Settlement of Undelivered Forward Contracts,” published on the apex bank’s website on Thursday, August 7, 2025.
According to the document, the CBN stated: “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.”
The audit, conducted by Deloitte Management Consultant from September 2023, focused on forex transactions carried out under the Retail Secondary Market Intervention Sales (RSMIS) window—specifically contracts where naira was paid in advance for U.S. dollar delivery at future dates. Many of these dollar obligations, however, went undelivered.
The CBN said the review was launched to verify the legitimacy of these transactions, protect Nigeria’s dwindling forex reserves, and enforce compliance with regulatory standards.
The CBN clarified that affected counterparties were given the opportunity to respond to audit queries before any contract was invalidated. Where contracts failed to meet the required standard, the naira collected was refunded, but no foreign exchange was disbursed.
In a related letter dated August 4, 2025, signed by Okey Umeano, Acting Director of the Financial Markets Department, the Bank informed all authorised dealer banks that the naira value of unverified or invalid contracts had been refunded.
In another development, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has congratulated the new Managing Director and the Executive Director Operations of the Nigeria Deposit Insurance Corporation (NDIC) on their appointments and expressed optimism about deepening collaboration between the two institutions.
This was disclosed during a courtesy call by the newly appointed Management of the NDIC, led by the Managing Director/Chief Executive, Mr. Thompson O. Sunday, Wednesday at the CBN Headquarters in Abuja.
Head, Communication & Public Affairs, Hawwau Gambo, in a statement quoted the apex bank governor, Cardoso saying: “Our meeting today is a clear testament to our willingness to work together. The CBN counts on NDIC’s support in navigating the uncertain times that we are in”.
He reiterated that the visit underscored the shared commitment of both institutions to strengthen collaboration towards safeguarding Nigeria’s financial system, amidst evolving economic challenges.
Cardoso averred that his two years in office have revealed critical lessons in the financial industry, requiring that the CBN and the NDIC proactively deal with potential shocks by leveraging modern tools for financial stability. He described the NDIC’s visit as timely, urging both institutions to work closely in mitigating risks and ensuring depositor confidence.
Earlier in his address, the NDIC MD/CE, Mr. Thompson O. Sunday, commended the CBN for its reform programmes under the leadership of Mr. Cardoso, particularly the stabilization of the forex market as well as the ongoing recapitalization of Deposit Money Banks. He stated that the NDIC was committed to aligning its operations with the NDIC Act 2023 (as amended), explaining that the Corporation was in the process of embarking on a strategic restructuring to better align operations with its risk minimization mandate as well as developing a new corporate strategy as the one in use was due to expire at the end of the current year.
Mr. Sunday reiterated the NDIC’s willingness to collaborate with the CBN towards enhancing financial system stability, expressing appreciation for the CBN’s support in premium collection from insured institutions.