CBN Says Only Verified Claims Will be Paid From $7bn Forex Backlog
- The Central Bank of Nigeria is finally set to clear the Forex backlog but says only verified claims will be paid
- The verification process revealed several unethical and illegal practices from the FX market participants
- The CBN governor has expressed confidence that the government will address FX liquidity challenges
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Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Central Bank of Nigeria (CBN) governor, Olayemi Cardoso has announced that only verified claims in the outstanding $7 billion Foreign Exchange backlog will be paid.
The apex bank boss noted that despite how long it has taken, the clearance of the backlog would help multinational businesses and investors repatriate their funds.
He explained that decisive steps had been taken to address the foreign exchange liquidity constraint and emphasized that this initiative had restored confidence among market participants.
Source: Getty Images
Mr. Cardoso disclosed this during the launch of Nigeria’s Regulatory Policy Framework at the State House Conference Hall, FCT.
Illegal practices uncovered in FX verification process
The CBN governor recently opened up about the forensic verification process uncovering a high level of unethical practices.
He warned that such actions would attract serious and instant penalties under the new Foreign Exchange code.
Mr. Cardoso also reaffirmed the government's commitment to meeting its financial obligations efficiently and timely.
CBN to sort unverified claims
Cardoso noted that several unverified claims discovered by the forensic auditors during the verification were also being reviewed and were nearing the final stages of classification.
He reaffirmed the government's determination to strengthen the market and rebuild the trust that investors rightfully expect and deserve.
His words;
“We also looked at the unverified ones, and I believe that we are at the final stages of separating what qualifies as fully verified, and we will surely be paying out those money that have been verified by the forensic auditors."
The bank governor noted that the verification only took so long because of the unethical practices uncovered, but the newly launched FX code would strengthen the Nigerian foreign exchange market and prevent a repeat of such a scenario.
He promised that the market would be more transparent henceforth.
"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.”
Speaking at the event which was organised by the Presidential Enabling Business Environment Council (PEBEC), the Director-General Princess Zahrah Audu assured that PEBEC will provide businesses with a stable environment to operate and thrive.
Audu noted that the government always wants to get input from business owners before making policies or passing them into law.
CBN commences payment of forex backlog
In related news, the CBN recently announced that it was set to commence payment of all foreign exchange backlogs.
The CBN governor noted that the verification was nearing completion and urged concerned companies and businesses to exercise more patience.
He lamented the verification exercise that lasted over a year because of several irregularities discovered by the forensic auditors.
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Source: Legit.ng
