According to the Central Bank of Nigeria’s (CBN) weekly International Payments Data, the country’s Letter of Credit (LC) payments for imports have significantly dropped. In the reviewed period, LC payments decreased from $912.35 million to $391.91 million, a decline of $520.44 million.
The data shows that the highest LC payments this year were recorded in February ($102.59 million), followed by July ($79.65 million) and January ($58.33 million). However, payments in March ($43.53 million) and May ($21.48 million) were significantly lower compared to the same period in 2023.
The CBN has been working to stabilize the foreign exchange market, selling $122.67 million to authorized dealers. The bank’s Director of Financial Markets, Dr. Omolara Duke, stated that the sales aimed to reduce market volatility.
This development comes amid a forex crisis, with Nigeria’s foreign trade payments experiencing a 57% decline. The CBN’s efforts to stabilize the market and promote foreign exchange stability continue, but the impact of the crisis on the country’s trade payments remains significant.
