The Central Bank of Nigeria says it will impose civil, administrative, or criminal sanctions on parties found to have violated foreign exchange regulations, following the completion of a forensic audit into undelivered forward contracts.

The disclosure was made in a document titled Frequently Asked Questions on the Settlement of Undelivered Forward Contracts, published on the Bank’s website on Thursday.

The document read, “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, carried out by Deloitte beginning in September 2023, examined transactions under the Retail Secondary Market Intervention Sales window.

These contracts required upfront naira payments in exchange for future US dollar delivery—many of which were never honoured.

The CBN said the audit was essential to verify the authenticity of the contracts, safeguard the country’s FX reserves, and maintain regulatory integrity.

The audit uncovered widespread irregularities, including discrepancies in beneficiary identities, inflated FX requests, submission of incorrect or blank Form M documents, and approvals granted for non-eligible imports.

The CBN noted that some transactions were supported by vague or falsified documentation, while others involved companies lacking proper authorisation to import the listed items.

In many instances, the approved FX sale value exceeded the actual cost of imported goods, suggesting misrepresentation.

The CBN stated that these violations rendered the contracts void under Nigerian law and ineligible for FX settlement. Only contracts found to be legitimate and compliant were honoured.

The CBN has declared the audit process closed and not subject to appeal, citing the independence of the review and the procedural fairness with which it was conducted.

“The audit conclusions were based on a rigorous process carried out by an independent forensic expert (Deloitte), acting pursuant to a transparent mandate.

“The auditor contacted the authorized dealer banks concerning those contracts to get their explanations of the infractions before reaching conclusions on them. The findings have therefore met procedural fairness standards. The case of undelivered forward contracts is now concluded and closed,” the document stated.

The move marks a renewed push by the CBN to bring transparency and discipline to the foreign exchange market, following years of turmoil linked to unfulfilled forward contracts, opaque transactions, and allegations of rent-seeking.

The Bank restated its commitment to honouring legitimate obligations while tightening regulatory controls to prevent future abuses.