The Central Bank of Nigeria (CBN) has successfully cleared the long-standing $7 billion foreign exchange backlog, marking a significant step towards easing the foreign currency liquidity constraints in the country. This was announced by CBN Governor, Olayemi Cardoso, during the launch of Nigeria’s Regulatory Policy Framework by the Presidential Enabling Business Environment Council (PEBEC) at the State House Conference Hall in Abuja on Wednesday.
The clearance follows a thorough verification process carried out by forensic auditors, which was aimed at resolving the bottlenecks that had hindered the smooth repatriation of funds by businesses, multinationals, and foreign investors. The CBN governor expressed optimism that this development would significantly improve the foreign exchange market and promote a more seamless process for repatriating funds.
“Decisive steps have been taken to clear the outstanding $7 billion forex backlog,” Cardoso said. “This initiative has restored confidence among market participants and reinforced Nigeria’s commitment to honoring financial obligations in a timely and efficient manner.”
While acknowledging the delay in clearing the backlog, Cardoso attributed the prolonged process to practices that had occurred in the past that should never have taken place. However, he emphasized that the government is committed to strengthening the market and fostering better trust among investors.
The CBN’s successful resolution of the forex backlog is expected to have a positive impact on the business environment in Nigeria, helping to alleviate financial uncertainties and create a more predictable and stable policy framework for investors.
In her remarks, Princess Zahrah Audu, the Director-General of PEBEC, highlighted that the government is keen on establishing a stable policy environment. She assured businesses that they would be actively involved in the formation of policies, fostering a collaborative approach between the public and private sectors.
The announcement has been welcomed by the business community, as it signals the government’s determination to support a more transparent and efficient economic system, ultimately driving growth and investor confidence.
