The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has attributed the recent rise in Nigeria’s foreign exchange (FX) reserves to the clearing of the nation’s FX backlog.

Cardoso spoke during the CBN Governor’s Annual Lecture Series at the Lagos Business School on Friday.

“The clearance of the FX backlog may not seem significant to many, but it contributed substantially to the increase in our foreign reserves,” he said.

The CBN had on March 20 announced the settlement of all outstanding FX obligations, valued at over $7 billion at the time. Cardoso described the move as central to maintaining the apex bank’s credibility.

“When I assumed office, I committed to clearing the verifiable backlog owed by Nigeria to third parties. It was not easy, but we could not compromise on integrity,” he said.

According to Cardoso, the CBN conducted a forensic audit to understand the backlog and followed its recommendations in settling the outstanding transactions. “Some argued why pay for obligations that didn’t arise under my watch. I insisted we must keep our promises if we want investors to trust and invest in our economy,” he added.

The Governor stressed that maintaining public trust is critical for economic growth. Nigeria’s FX reserves rose by $1.03 billion in September alone, highlighting the impact of the FX backlog clearance.