From Juliana Taiwo-Obalonye, Abuja
The Central Bank of Nigeria (CBN) is on the verge of finalising the clearance of a $7 billion foreign exchange backlog, Governor Olayemi Cardoso has announced, adding that forensic verification processes are nearing completion.
He made this disclosure at the Second Existing Foreign Direct Investors Roundtable and Regulators’ Forum and the launch of Nigeria’s regulatory impact analysis framework at the State House Conference Centre, Abuja.
He detailed efforts to unify exchange rates and clear a backlog of $7 billion in FX-backed loans, restoring confidence among investors.
Highlighting the significance of this initiative in restoring transparency and trust in the FX market, he said: “Yes, the backlog of $7 billion has been cleared, and we have verified the claims. We looked at the unverified claims and I believe we are at the final stages of separating what qualifies as fully verified. I will shortly be paying out those monies that have 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 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,” he said.
Cardoso expressed optimism about Nigeria’s investment landscape. He stated, “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.”
The CBN Governor further highlighted Nigeria’s potential, citing its large consumer base and skilled workforce. “Nigeria remains one of Africa’s most promising investment destinations,” he said. He emphasised the CBN’s role in creating macroeconomic stability, noting, “Our policies are tailored to ensure a conducive environment for both local and foreign investors.”
Discussing inflation control, Cardoso revealed that the CBN has prioritised monetary tightening, raising the Monetary Policy Rate from 18.5% in February 2024 to 27.5% by November 2024.
He acknowledged concerns about high interest rates but stressed their necessity for stabilising the economy: “The real monster is inflation; if the populace lacks spending power, goods will not sell.”
On foreign exchange reforms, he stated, “The bank has implemented comprehensive FX market reforms aimed at enhancing liquidity and ensuring price stability.”
Cardoso concluded with a commitment to transparency and collaboration with fiscal authorities: “We are dedicated to policy consistency and proactive engagement with investors.” He affirmed that these reforms are crucial for achieving projected GDP growth of 4.17% by 2025, reinforcing Nigeria’s position as a viable investment destination.
Speaking earlier, Deputy Chief of Staff to the President (Vice President’s office), Ibrahim Hadejia, emphasised the Nigerian government’s commitment to creating an enabling environment for foreign investments.
He stated, “We are dedicated to fostering a business-friendly climate that attracts both local and foreign investments.”
Hadejia highlighted the significance of the newly launched regulatory impact analysis framework, which aims to streamline processes for investors. “This framework is designed to simplify regulations and enhance transparency, making it easier for investors to navigate the Nigerian market,” he explained. He underscored that effective regulation is crucial for building investor confidence.
Reflecting on Nigeria’s economic potential, Hadejia remarked, “With our rich resources and youthful population, Nigeria stands poised to become a leading investment destination in Africa.” He urged investors to seize the opportunities available in various sectors, including agriculture, technology, and infrastructure.
The Deputy Chief of Staff also addressed concerns about regulatory compliance and investor protection. “We recognise the importance of monitoring investor activities to ensure adherence to our policies,” he said. “Our goal is to create a sustainable investment ecosystem where both the government and investors can thrive.”
Hadejia concluded by inviting investors to engage with the government actively. “We are here to support you every step of the way,” he affirmed. His address reinforced the Nigerian government’s commitment to enhancing its investment landscape and fostering sustainable economic growth through strategic partnerships with foreign investors.
