Breaking Down the $7bn FX Clearance: What Cardoso Revealed

Following a successful verification process by forensic auditors, Olayemi Cardoso, governor of the Central Bank of Nigeria, declared on Wednesday that the Federal Government had cleared the $7 billion foreign exchange backlog owed to several enterprises.

Cardoso made this announcement during the Presidential Enabling Business Environment Council's unveiling of Nigeria's Regulatory Policy Framework.

The State House Conference Hall in Abuja hosted the event, which was dubbed the regulators' forum.

Speaking to the crowd, Cardoso said the bank was hopeful that the $7 billion backlog will be cleared, which would reduce the delays in enterprises, multinational corporations, and foreign investors repatriating their money.

The CBN governor claims that the pending forex clearance process took much longer than they had initially projected.

"Determinate measures have been taken to clear the outstanding $7 billion forex backlog in order to address the foreign exchange liquidity constraint and ensure that businesses, multinationals, corporations, and foreign investors can repatriate funds seamlessly," he stated.

"This initiative has bolstered Nigeria's commitment to timely and efficient financial obligation fulfillment and restored confidence among market participants." Regarding the $7 billion backlog, we have resolved the confirmed claims.

We also examined the unconfirmed ones, and I think we are nearing the point where we can determine which ones are totally verified. We will undoubtedly pay out the funds that the forensic auditors have confirmed. The fact that it has taken so long is regrettable, to be honest.

However, the reality is that many practices occurred that were really never supposed to occur in the first place. Having stated that, we will make sure that we take the necessary steps to improve our market and foster greater confidence in what your investors rightfully deserve and naturally want.

Earlier in her speech, Princess Zahrah Audu, the director-general of PEBEC, clarified that one of the commission's primary indicators was that most businesses anticipated a stable and predictable policy environment from the government.

Audu concurred with the President that the goal they sought to accomplish with the policy framework was the same.

Because sectoral stakeholder participation in smaller groups is one of the things we actively encourage our MDAs to undertake, she continued, "We are going to help you become a part of the formation of this policy." A more rigorous procedure must now be followed before a policy becomes legislation.
 

It is crucial to remember that this government will approach things in a different way. Since we don't believe we know everything, we are always seeking your opinion. There are significant differences between the perspectives of the private sector and the government when it comes to business.

We must always strike a balance between the two and consider ourselves stakeholders. We will always be available, and we will respond to emails and calls promptly. As previously stated, my predecessor has provided us with a strong foundation upon which to develop.