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In a major policy move aimed at enhancing foreign exchange liquidity and restoring investor confidence, the Central Bank of Nigeria (CBN) has successfully cleared a $7 billion foreign exchange (FX) backlog, following a rigorous verification process by forensic auditors.
CBN Governor Olayemi Cardoso made this announcement on Wednesday at the launch of Nigeria’s Regulatory Policy Framework, an event organized by the Presidential Enabling Business Environment Council (PEBEC). The Regulators’ Forum, held at the State House Conference Hall in Abuja, brought together key stakeholders to discuss Nigeria’s evolving regulatory framework and business environment.
CBN’s Decisive Action to Strengthen FX Market Stability
Addressing the audience, Cardoso emphasized that clearing the outstanding FX obligations would alleviate challenges faced by businesses, multinationals, and foreign investors in fund repatriation. He acknowledged that the process took longer than anticipated but reaffirmed Nigeria’s commitment to meeting its financial obligations transparently and efficiently.
“In addressing foreign exchange liquidity constraints, decisive steps have been taken to clear the outstanding $7 billion forex backlog, ensuring businesses, corporations, and investors can seamlessly repatriate their funds. This initiative has restored confidence in the market and reinforces Nigeria’s commitment to honoring financial obligations,” Cardoso stated.
He further explained that the verification process was crucial in distinguishing legitimate claims from irregular transactions, emphasizing the need for better regulatory oversight in the future.
“We are at the final stages of reviewing what qualifies as fully verified, and we will ensure that only legitimate claims are settled. Unfortunately, the process took longer than expected due to questionable past practices that should never have occurred. Moving forward, we are committed to strengthening the financial market and fostering greater trust among investors,” he added.
A More Predictable Business Environment
During the event, PEBEC Director-General, Princess Zahrah Audu, highlighted the administration’s pro-business approach, emphasizing the need for a stable and predictable regulatory framework. She noted that Nigeria’s economic policies should be shaped with input from industry stakeholders, ensuring that businesses operate in an environment conducive to long-term growth.
“One of our core goals is to ensure that companies benefit from a stable and predictable policy environment. This administration is taking a different approach—we actively engage stakeholders across sectors before policies are enacted. Our doors remain open for feedback, and we are committed to transparent governance and responsive regulatory reforms,” Audu stated.
She reiterated that the new policy framework aims to balance the needs of both the public and private sectors, ensuring that government decisions align with business realities.
A Turning Point for Nigeria’s Economic Confidence
The clearance of the $7 billion FX backlog is expected to ease liquidity pressures, boost investor confidence, and enhance regulatory transparency. The move aligns with broader financial sector reforms, reinforcing Nigeria’s commitment to sound financial governance, compliance management, and regulatory enforcement.
As CBN and PEBEC push forward with these reforms, businesses and investors can anticipate a more resilient, predictable, and efficient financial landscape, fostering long-term economic stability and growth.
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