Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), revealed on Wednesday that the Federal Government has cleared the $7 billion foreign exchange backlog owed to different firms.
This accomplishment comes after forensic auditors carried out a thorough verification process. Cardoso made the revelation at the State House Conference Hall in Abuja, which was the venue for the Presidential Enabling Business Environment Council’s (PEBEC) launch of Nigeria’s Regulatory Policy Framework.
Speaking at the event, themed the Regulators’ Forum, Cardoso expressed optimism that the clearance of the backlog would alleviate challenges faced by businesses, multinational corporations, and foreign investors in repatriating funds. He emphasized that the initiative underscores Nigeria’s commitment to maintaining financial integrity and fostering a stable economic environment.
“In addressing foreign exchange liquidity constraints, decisive steps have been taken to clear the $7 billion forex backlog, ensuring seamless repatriation of funds for businesses, multinationals, and foreign investors, This initiative has restored confidence among market participants and reinforced Nigeria’s commitment to honoring financial obligations in a timely and efficient manner.” Cardoso stated.
The CBN governor acknowledged that the process took longer than anticipated, attributing the delay to irregularities uncovered during the verification exercise. “We have cleared the verified claims and are in the final stages of addressing unverified ones. It is unfortunate that it took this long, but certain practices that occurred should never have happened in the first place. We are committed to strengthening the market and building the trust that investors deserve,” he added.
Earlier in the event, PEBEC Director-General, Princess Zahrah Audu, highlighted the importance of a stable and predictable policy environment for businesses. She reiterated the administration’s commitment to fostering collaboration between the government and the private sector.
“We are actively engaging stakeholders to ensure their input shapes policy formation. This administration is dedicated to doing things differently, balancing government and private sector perspectives to drive economic growth,” Audu said.
An important stage in Nigeria’s attempts to win back investor trust and improve the business climate is the clearing of the forex backlog. Together with PEBEC’s regulatory reforms, the CBN’s actions indicate a renewed emphasis on economic stability, efficiency, and transparency.
