CBN Clears $7 Billion Outstanding Forex Backlog

• The CBN Governor made the announcement during the Nigeria’s Regulatory Policy Framework launch event organized by the Presidential Enabling Business Environment Council at the State House Conference Hall in Abuja.
• Audu noted that a majority of companies expect the government to provide such an environment, echoing President Bola Tinubu’s sentiment regarding the policy framework’s primary objectives.

The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, recently announced that the Federal Government has cleared an outstanding $7 billion foreign exchange backlog owed to various firms.

Eko Hot Blog gathered that the clearance comes after a comprehensive verification process conducted by forensic auditors.

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The CBN Governor made the announcement during the Nigeria’s Regulatory Policy Framework launch event organized by the Presidential Enabling Business Environment Council at the State House Conference Hall in Abuja.

Cardoso expressed optimism that the resolution of the $7 billion backlog would alleviate challenges associated with the repatriation of funds by businesses, multinationals, and foreign investors.

However, he noted that the process took longer than initially anticipated due to the discovery of multiple unethical and illegal practices during the verification process.

He said, “In addressing foreign exchange liquidity constraint, decisive steps have been taken to clear outstanding $7bn forex backlog to ensure that businesses, multinationals, corporations, and foreign investors can repatriate funds seamlessly

‘This initiative has restored confidence among market participants and reinforced Nigeria’s commitment to honouring financial obligations in a timely and efficient manner. Talking about the $7bn backlog, we have cleared the verified claims.

“We also looked at the unverified ones, and I believe that we are at the final stages of separating what qualifies as fully verified, and we will surely be paying out those money that have been verified by the forensic auditors. It is unfortunate, to be honest, that it has taken so long.

“But the truth of the matter is that there were a lot of practices that went on that really should never have happened in the first place. That said, we are going to ensure that we do what we need to do to strengthen our market and create a better trust in what you investors naturally desire and deserve.”

Princess Zahrah Audu, the Director-General of the Presidential Enabling Business Environment Council (PEBEC), emphasized the importance of a stable and predictable policy environment for businesses in Nigeria during her address at the launch event for Nigeria’s Regulatory Policy Framework.

Audu noted that a majority of companies expect the government to provide such an environment, echoing President Bola Tinubu’s sentiment regarding the policy framework’s primary objectives.

She said, “We are going to help you become a part of the formation of this policy because one of the things we actively encourage our MDAs to do is to have a sectoral stakeholder engagement in smaller groups. Now there is a more thorough process to go through before a policy is passed into law.

“It is very important to note that this administration will do things differently. We are constantly asking for your input because we don’t think we know it all.

When you look at business from a government perspective, it is very different from looking at it from a private sector view.

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“It is important that we always balance the two and see ourselves as stakeholders. Our doors will always be open, and we will be very responsive when it comes to calls and emails. As earlier said, my predecessor has left a viable platform for us to build on.”

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