CBN $200b Policy Broadens Sources of Dollar Earnings
The Central Bank of Nigeria (CBN) has disclosed that its $200 billion non-oil export revenue target policy has introduced new commodities to the market and expanded the sources for dollar earnings.
The Principal Manager, Trade and Exchange Department, CBN, Mrs. Anne Nnenna Ezekannagha, said the policy, named – FX- incentivises export earnings to encourage more dollar accruals to the economy, has major players in the solid minerals space as contributors.
She gave feedback on the scheme at the Finance Correspondents Association of Nigeria (FICAN) yearly workshop in Lagos.
According to her, Non-Oil Export Proceeds Repatriation Rebate Scheme remains the major anchor of the programme, which has a policy thrust to raise $200 billion in forex earnings from non-oil export proceeds over the next three to five years.
Speaking on the theme: “Boosting Domestic Capacity for Sustainable Export Earnings.”, Ezekannagha said: “RT200 is an initiative that was launched by the CBN and is anchored on our rebate scheme. So, the idea is that we want to encourage exporters to repatriate their funds. A lot of exporters do not repatriate their funds and the RT200 is to encourage the repatriation of non-oil proceeds.”
“We have seen a significant improvement not just in the figures that are being repatriated, but also in the number of exporters that are willing to come to the formal sector. Because a lot of our export has been happening informally, but with this scheme, we have found that a lot more players in the export sector are willing to come to the formal sector.
“So, we are also noticing not just the increase in the figures but also in the increase of the commodities that we are exporting that was reported earlier. Like the solid minerals, we are seeing more in the solid minerals and we are seeing more players in that sector, coming into the formal sector to report their exports and participate in the RT200.”
Director-General, Securities and Exchange Commission (SEC), Lamido A. Yuguda, noted the capital market had a significant role to play in contributing to the country’s sustainable foreign exchange earnings by attracting more foreign portfolio and direct investments.
Yuguda noted that the 10-year Nigerian Capital Market Master Plan (2015-2025) was built around four strategic themes, one of which is to “promote competitiveness by establishing practices that improve transparency, efficiency and liquidity and to attract sustainable interest in the capital market from domestic, as well as foreign investors and participants”.