The verification procedure for the remaining $2.4 billion foreign exchange (FX) backlog is being completed, according to the Central Bank of Nigeria (CBN). Payments for legitimate claims are about to start.
CBN Governor Olayemi Cardoso revealed this in Abuja on Wednesday during the second roundtable for current foreign direct investors and regulators’ forum and the introduction of Nigeria’s regulatory effect analysis framework.
According to Cardoso, the FX backlog has decreased to $2.2 billion from $7 billion when he took office. In March of last year, he claimed that all legitimate claims had been resolved, except $2.4 billion, which was deemed possibly void following an inquiry.
The CBN started a re-validation procedure in response to pressure from the Manufacturers Association of Nigeria (MAN) to allay importers’ and manufacturers’ worries over unresolved foreign exchange claims.
Cardoso gave an update, stating that forensic verification is almost finished.
“Yes, we had a backlog of $7 billion, and we have cleared the verified claims. We examined the unconfirmed allegations, and I think we are nearing the end of the process of determining which ones are completely proven,” he stated.
“I will shortly be paying out those monies that have been verified by the forensic auditors. I had a feeling that if I was going to receive any recognition today, it would be for that.
Although he admitted the delay, he blamed it on anomalies in previous transactions.
“It’s unfortunate that it has taken so long, but the truth is, there were a lot of practices that should never have happened in the first place. However, we are committed to building trust and bolstering our market, which is something that investors naturally want and deserve’, Cardoso continued.
The governor of the CBN was upbeat about Nigeria’s economic prospects, highlighting the country’s robust consumer base and highly qualified labor force. “Nigeria remains one of Africa’s most promising investment destinations,” stated the governor. “Our policies are tailored to ensure a conducive environment for both local and foreign investors.”
Cardoso emphasized the necessity of stabilizing the economy in response to worries over high interest rates.
“The real monster is inflation; if the populace lacks spending power, goods will not sell,” he added.
He restated the CBN’s dedication to openness and greater coordination with fiscal authorities to increase Nigeria’s appeal to investors.
Earlier, Ibrahim Hadejia, the president’s deputy chief of staff (vice-president’s office), reaffirmed the federal government’s commitment to creating an atmosphere that is conducive to business. Hadejia stated, “We are dedicated to fostering an environment that draws in both domestic and foreign investments.”
He said the recently introduced regulatory impact analysis framework will assist investors in streamlining procedures.
