CBN Clears $7 Billion FX Backlog to Boost Investor Confidence

The Central Bank of Nigeria (CBN), under Governor Olayemi Cardoso, has cleared a backlog of $7 billion in unsettled foreign exchange obligations, which is expected to bolster investor confidence in the Nigerian economy. This initiative is part of a broader strategy to enhance dollar inflows and strengthen external reserves, which have seen a significant increase, reaching $112 billion by 2025, according to the Financial Market Dealers Association.

The CBN's efforts include a forensic audit to assess claims and ensure the legitimacy of outstanding obligations. The report indicates that autonomous inflows, including diaspora remittances and foreign portfolio investments, accounted for 64.94% of total foreign exchange inflows, reflecting a growing role of private capital.

The CBN's foreign exchange sales rose by 126.37% during the review period, with a notable increase in invisibles-related transactions. The overall foreign exchange utilization is projected to rise to $47.17 billion by 2025, driven by industrial sector demand.