FG clears $7b outstanding FX backlog – Cardoso

Cardoso made this announcement during the launch of Nigeria’s Regulatory Policy Framework, organized by the Presidential Enabling Business Environment Council (PEBEC).

The event, referred to as the regulators’ forum, was held at the State House Conference Hall in Abuja.

In his address, Cardoso expressed optimism that clearing the $7 billion backlog would alleviate the challenges businesses, multinationals, and foreign investors face when repatriating funds. He noted that the process took significantly longer than expected.

He said, “To address the constraints in foreign exchange liquidity, we have taken decisive actions to clear the outstanding $7 billion forex backlog, allowing businesses, multinationals, corporations, and foreign investors to repatriate funds smoothly. This initiative has restored confidence among market participants and demonstrated Nigeria’s commitment to fulfilling financial obligations promptly and efficiently. Regarding the $7 billion backlog, we have cleared the verified claims.

“We are also reviewing the unverified claims, and I believe we are nearing the final stages of identifying what qualifies as fully verified, ensuring that verified amounts will be paid out. It is unfortunate that this process has taken so long. However, it’s important to acknowledge that there were many practices that should never have occurred. Moving forward, we are committed to strengthening our market and fostering the trust that investors rightfully expect.”

Earlier, PEBEC Director-General Princess Zahrah Audu emphasized that one of the commission’s key indicators is that most companies expect the government to provide a stable and predictable policy environment. She echoed the President’s commitment to achieving this goal through the policy framework.

Audu said, “We want to involve you in the development of this policy because we actively encourage our MDAs to engage with sector stakeholders in smaller groups. There is now a more comprehensive process to follow before a policy is enacted.

“It’s crucial to understand that this administration will approach things differently. We continuously seek your input because we recognize that we don’t have all the answers. Viewing business from a government perspective differs significantly from a private sector viewpoint. It’s essential to balance both perspectives and see ourselves as stakeholders. Our doors will always be open, and we will respond promptly to calls and emails. As mentioned earlier, my predecessor has established a solid foundation for us to build upon.”