The Central Bank of Nigeria (CBN) has announced that it has cleared a $7 billion forex backlog, which it owed to various businesses. Analysts expect this move to significantly boost investor confidence and ease concerns about repatriating funds from the country.
Governor Olayemi Cardoso made the announcement at the launch of Nigeria’s Regulatory Policy Framework organized by the Presidential Enabling Business Environment Council (PEBEC).
“In addressing foreign exchange liquidity constraints, decisive steps have been taken to clear the outstanding $7 billion forex backlog to ensure that businesses, multinationals, corporations, and foreign investors can repatriate funds seamlessly,” Cardoso stated.
He acknowledged that the clearance process had taken longer than anticipated, attributing the delay to “a lot of practices that went on that really should never have happened in the first place.”
Cardoso emphasised the government’s commitment to strengthening the foreign exchange market and restoring trust among investors. “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,” he said.
This development comes as a significant relief to businesses, many of whom have faced challenges in repatriating profits and dividends due to foreign exchange restrictions.
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Experts anticipate that clearing the backlog will improve Nigeria’s image as an investment destination and encourage greater foreign direct investment inflows.
PEBEC Director-General, Princess Zahrah Audu, highlighted the importance of a stable and predictable policy environment for businesses. “One of the key indicators for the commission was that the majority of the companies expected the government to provide them with a stable and predictable policy environment,” Audu stated.
She emphasised the government’s commitment to engaging with businesses and incorporating their feedback into policy formulation. “We are constantly asking for your input because we don’t think we know it all,” Audu said. “When you look at business from a government perspective, it is very different from looking at it from a private sector view.”
This news marks a significant step towards improving Nigeria’s business environment and fostering economic growth. By addressing the foreign exchange backlog and creating a more predictable policy framework, the government aims to attract greater investment and unlock the country’s economic potential.
