Central Bank of Nigeria (CBN) is currently in the final stages of verifying a backlog of unverified foreign exchange (FX) transactions amounting to $2.4 billion.
Governor Olayemi Cardoso provided this update during a recent forum for foreign direct investors and regulators held in Abuja. He indicated that valid claims will soon be processed for payment.
On February 5, 2024, Cardoso reported that the $7 billion FX backlog, which was inherited from the previous administration, had been reduced to $2.2 billion. Last year in March, he mentioned that all valid outstanding FX backlog claims were settled, although an inquiry revealed that approximately $2.4 billion of the total claims were invalid.
In response to concerns raised by the Manufacturers Association of Nigeria (MAN), the CBN announced it was conducting an FX re-validation exercise to address manufacturers’ and importers’ complaints regarding the $2.4 billion in claims.
During the recent event, Cardoso noted that efforts are being made to unify exchange rates and alleviate the backlog related to $7 billion in FX-backed loans, which are aimed at restoring investor confidence. He also mentioned that the 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,” he said.
“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.”
Cardoso 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,” he said.
“Our policies are tailored to ensure a conducive environment for both local and foreign investors.”
On 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 said.
Cardoso also 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.
Speaking earlier, Ibrahim Hadejia, deputy chief of staff to the president (vice-president office), emphasised the federal government’s commitment to creating an enabling environment for foreign investments.
“We are dedicated to fostering a business-friendly climate that attracts both local and foreign investments,” Hedejia said.
The deputy chief of staff said the newly launched regulatory impact analysis framework will streamline processes for investors.
