The Central Bank of Nigeria (CBN) has said that it is in the final stages of the process of verifying the $2.4 billion unverified foreign exchange (FX) backlog.
It also assured that the valid transactions will soon be paid.
Governor of CBN, Olayemi Cardoso, stated this at the second existing foreign direct investors roundtable and regulators’ forum and the launch of Nigeria’s regulatory impact analysis framework.
On February 5, 2024, Cardoso announced the $7 billion FX backlog “inherited” from the previous administration had dropped to $2.2 billion.
In March last year, he said all valid outstanding FX backlog claims had been settled, noting that about $2.4 billion of the sum was invalid, following an enquiry into the transactions.
The CBN had said it was looking into the FX re-validation exercise to ascertain complaints of manufacturers and importers over FX claims worth $2.4 billion.
Providing updates at the event on Wednesday, Cardoso said efforts to unify exchange rates and clear a backlog of $7 billion in FX-backed loans, are restoring confidence among investors.
He further said forensic verification processes are nearing completion.
“Yes, we had a backlog of $7 billion and we have cleared the verified claims. We looked at the unverified claims and I believe that we are at the final stages of separating what qualifies as fully verified.
“I will shortly be paying out those monies that had been verified by the forensic auditors. Something told me that if there was anything I would get a clap for today. It was that.
“It’s unfortunate 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.
“But anyway that said, we are going to ensure that we do what we need to strengthen our market and to create better trust in what you investors naturally desire and deserve,” he added.
Cardoso further expressed optimism about Nigeria’s investment landscape.
“This forum is a testament to the shared commitment between the public and private sectors to foster a more dynamic and investor-friendly economic environment,” he added.
The CBN governor, highlighting Nigeria’s potential, stressed its large consumer base and skilled workforce — adding that the CBN’s role is to create macroeconomic stability.
“Nigeria remains one of Africa’s most promising investment destinations. Our policies are tailored to ensure a conducive environment for both local and foreign investors,” he added.
On the issue of inflation control, Cardoso acknowledged concerns about high interest rates but stressed the necessity for stabilising the economy.
“The real monster is inflation; if the populace lacks spending power, goods will not sell,” he stated.
The CBN governor said the apex bank is committed to transparency and collaboration with fiscal authorities, adding that Nigeria’s position as a viable investment destination would reinforced.
