The Central Bank of Nigeria (CBN) has cleared the $7 billion foreign exchange backlog owed to various firms, following a comprehensive verification exercise conducted by forensic auditors.
The move is expected to ease the repatriation of funds by businesses, multinationals, and foreign investors, reinforcing confidence in Nigeria’s financial system.
CBN Governor Olayemi Cardoso made the announcement on Wednesday at the launch of Nigeria’s Regulatory Policy Framework, organized by the Presidential Enabling Business Environment Council (PEBEC) at the State House Conference Hall in Abuja.
Cardoso acknowledged that the forex backlog clearance took longer than anticipated, but emphasized that it was necessary to ensure a thorough verification process.
“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.”
The forex clearance is expected to improve liquidity in the market, making it easier for businesses to access foreign exchange for transactions and investments. The CBN had come under pressure in recent months as businesses struggled with delayed forex repatriation, prompting concerns over Nigeria’s investment climate.
During the event, PEBEC Director-General, Princess Zahrah Audu, underscored the importance of policy predictability for businesses, noting that companies expect the government to provide a stable regulatory framework.
“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.
“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.”
With the $7 billion backlog now cleared, investors and businesses are expected to experience smoother forex transactions, reducing operational bottlenecks and increasing Nigeria’s attractiveness as a foreign investment destination.
The CBN’s move is seen as a critical step in restoring stability to the forex market and reinforcing Nigeria’s commitment to financial transparency.