Economy

FOREX: CBN Eyes $200bn repatriation, from non-oil exports

Non-oil export: Emefiele appeals for dedicated route for exporters
Written by Maritime First

CBN Governor, Mr Godwin Emefiele

… Introduces RT200 Interventionist’s programme to improve exports, boost forex***

The Central Bank of Nigeria (CBN) has announced policies, plans and programmes for non-oil exports that will enable Nigeria to earn 200 billion dollars in foreign exchange repatriation.

The CBN Governor, Mr Godwin Emefiele, made the announcement virtually at the post-Bankers’ Committee news briefing on Thursday to unveil new initiatives to boost the Nigerian economy.

Emefiele said the measure became imperative due to the fact that the export of primary unprocessed commodities does not yield much in foreign exchange.

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He said that the country would not continue to put all its hopes on earnings from crude oil.

Emefiele said that even if the country depended on crude oil, it would not again be a source with which she earns foreign exchange to fund her foreign exchange import obligations.

“After careful consideration of the available options and wide consultations with the banking community, the CBN is, effective immediately, announcing the Bankers’ Committee “RT200 FX Programme”, which stands for the “Race to US$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 dollars in FX repatriation, exclusively from non-oil exports, over the next three to five years,” he said.

Emefiele said that the RT200 Programme would have the following five key anchors: 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.

“In order to avoid these sudden adjustments to our economic life, we need to focus on strategies that can help us earn more stable and sustainable inflows of foreign exchange,” he said.

The CBN governor said, however, that he was resolute and determined that Nigeria could achieve her goal saying though, it may appear unattainable to some.

Emefiele noted that many countries that were much less endowed than Nigeria were doing it expressing the believe that Nigeria could as well do so if not more.

He said: “Consider for example that agriculture exports alone from the Netherlands was about $120 billion last year. Yet, Netherlands has a landmass of about 42,000 square kilometers, which is much smaller than the landmass of Niger State alone, at over 76,000 square kilometers.”

He explained that the RT200 Programme was not intended to be a silver bullet to all of Nigeria’s problems in the export segment of the economy.

Emefiele said that the programme was a first step meant to ensure that the CBN was better able to carry out its mandate in an effective and efficient manner.

This, he said, would guarantee the preservation of our scarce commonwealth, and the stability of the national’s currency, the Naira.

“It is only by boosting productivity and earnings capacity of this economy that we can truly preserve the long-term value of our currency, as well as the stability of our exchange rate,” Emefiele said.

In another development, the Central Bank of Nigeria (CBN) has introduced a new intervention programme (RT200) to help improve export receipts and boost the country’s foreign exchange earnings.

The CBN Governor, Mr Godwin Emefiele, made this known on Thursday in Abuja while addressing journalists on the fallout from the Bankers’ Committee Meeting.

Emefiele explained that RT200 implied “Race to N200 billion dollars in Foreign Exchange repatriation”.

He added that RT200 is a set of policies, plans and programmes for non-oil exports, designed to help the country attain a goal of US$ 200 billion exclusively from non-oil exports over the next three to five years.

The apex bank governor said that the programme was initiated after careful consideration of available options and wide consultations with the banking community.

He added that the RT200 programme would have five key anchors.

“They are Value-Adding Experts Facility; Non-Oil Commodities Expansion Facility; Non-Oil FX Rebate Scheme; Dedicated Non-Oil Export Terminal and Biannual Non-Oil Export Summit,” he said.

Emefiele explained that the RT200 was not intended to provide solution to all of Nigeria’s export problems, adding that it is a first step to solving the challenges.

“I am mindful that this goal may appear unattainable to some but I am resolute and determined that we can achieve it.

“The RT200 programme is not intended to be a silver bullet to all our problems in the export segment of the economy.

“It is a first step meant to ensure that the CBN is better able to carry out its mandate in an effective and efficient manner, which guarantees the preservation of scarce commonwealth and the stability of the Naira.

“It is only by boosting productivity and earning capacity of this economy that we can truly preserve the long-term value of our currency as well as the stability of our exchange rate,” he said.

 

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Maritime First