CBN Eyes $200bn FX Earnings from Non-oil Exports

February 11, 2022
Godwin Emefiele CBN Governor

By Aduragbemi Omiyale

About $200 billion is expected to be raised as foreign exchange (FX) earnings for Nigeria from non-oil exports in the next three to five years.

This is being championed by the Central Bank of Nigeria (CBN) in collaboration with the Bankers’ Committee, according to the governor of CBN, Mr Godwin Emefiele.

Addressing newsmen on Thursday after the committee’s meeting, Mr Emefiele said this initiative will forex supply into the market and boost the value of the Naira.

He said this policy would be implemented under the RT200 FX Programme through five components of value-adding exports facility, non-oil commodities expansion facility, non-oil FX rebate scheme, dedicated non-oil export terminal and biannual non-oil export summit.

He explained that this move became necessary because of the FX pressure on the economy, especially the external reserves.

“After careful consideration of the available options and wide consultation with the banking community, the CBN is, effective immediately, announcing the Bankers’ Committee RT200 FX Programme, which stands for the race to $200 billion in FX repatriation.

“The RT200 FX Programme is a set of policies, plans and programmes for non-oil exports that will enable us to attain our lofty yet attainable goal of $200 billion in FX repatriation exclusively from non-oil exports, over the next 3-5 years,” the apex bank chief informed reporters.

He stated that, “It is dangerous to put our hope in earnings we cannot control or earn from a source that comes in when things are good for us.

“But the moment they suspect that things are no longer good and when we need them the most is when they choose to leave us. We cannot as a country depend on that alone. We cannot, should not as a country, rely on that to fund our import obligations. We have to go back to the pre-crude oil period where we funded our import obligations from export earnings. Today, the journey begins. That journey to re-establish ourselves again.”

Explaining how one of the schemes works, the CBN chief said the non-oil FX rebate is a special local currency incentive for non-oil exporters of semi-finished and finished produce who show verifiable evidence of exports proceeds repatriation sold directly into the Investors’ and Exporters’ (I&E) window to boost liquidity in the market.

He used the occasion to announce that the central bank will from next year stop the supply of forex to deposit money banks (DMBs) as they would be required to develop initiatives to make them self-sufficient in meeting the FX needs of their customers.

“Before or about the end of this year, we will tell them (banks) don’t come to the CBN for dollars again. Go and generate your import funds by funding people who want to generate export proceeds.

“When the export proceeds come, we will fund them at 5 per cent. When those proceeds come, banks can sell to their customers that want millions of dollars.

“But to say they will continue to come to the CBN for dollars, we will stop that. We will stop it,” Mr Emefiele declared at the gathering.

Aduragbemi Omiyale

Aduragbemi Omiyale is a journalist with Business Post Nigeria, who has passion for news writing. In her leisure time, she loves to read.

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