ABUJA, Jan 30 (Reuters) – Nigerian non-deliverable currency forwards fell sharply to record lows against the U.S. dollar on Tuesday, mirroring falls on the official spot market, LSEG data showed.

Non-deliverable currency forwards, derivative products used to hedge against future exchange rate moves, indicated markets expected the naira’s exchange rate at 1,427.50 to the dollar in one month’s time NGNNDFOR=.

FMDQ Exchange data on Monday showed the naira had fallen to a record low of 1,421 per dollar on Friday on the thinly traded official market, below levels seen on the unofficial parallel market, where the currency trades freely.

On Monday, Nigeria’s central bank warned lenders about under reporting transactions on the financial market, leading to misinformation, attempts to create price distortions and market manipulation, and said such activity would be sanctioned.

The naira’s official exchange rate had been drifting towards the parallel market level as the central bank is yet to clear outstanding amounts owed in forward deals, worsening a shortage of foreign currency in Africa’s biggest economy.

The central bank still has about $5 billion in forwards that have matured, after it paid $2.5 billion to manufacturers and importers. The backlog has been a major concern for investors despite assurances by the Central Bank of Nigeria (CBN) that it would clear them.

Other maturities on the forwards market on Tuesday also fell, with traders quoting the currency as low as 1,626.18 naira per dollar in a year’s time.

(Reporting by Chijioke Ohuocha; Editing by Ed Osmond and Mark Potter)