The economy will benefit from the ongoing implementation of the Central Bank of Nigeria’s (CBN) Race To $200 Billion Policy that emphasises increased production of domestic goods. The three to five years policy is expected to also boost Nigeria’s foreign exchange earnings, reduce imports, boost exportation of domestic products and enhance economic recovery. COLLINS NWEZE writes that the policy implementation will enhance consumer spending and accelerate investments.
There is no doubt that Nigeria is in dire need of investments to quicken economic recovery following the devastating impact of COVID-19 pandemic.
While the foreign capital investments are awaited, expansion of domestic economy through local production of goods is advocated.
Real sector operators are also being encouraged by the Central Bank of Nigeria to generate export proceeds to boost dollar liquidity in the economy.
This plan aligns with the “RT200 FX Programme”, which stands for the “Race to $200 billion in FX Repatriation” policy of the apex bank announced in February.
CBN Governor, Godwin Emefiele said the programme is a set of policies, plans and programmes for non-oil exports that will enable Nigeria attain its lofty yet attainable goal of $200 billion in FX repatriation, exclusively from non-oil exports, over the next three to five years.
Emefiele said the RT200 FX Programme is one of the strategies that can help Nigeria earn more stable and sustainable inflows of foreign exchange.
He said the RT200 Programme implementation will be supported by 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 billed for next month.
He explained that RT200 Programme is not intended to be a silver bullet to all our problems in the export segment.
“Rather, 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 preservation of our scarce commonwealth, and the stability of our national currency, the Naira. It is only by boosting productive 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,” the governor added.
Emefiele added that the Value-Adding Export Facility will provide concessionary and long-term funding for business people who are interested in expanding existing plants or building brand new ones for the sole purpose of adding significant value to our non-oil commodities before exporting same.
He said the Non-Oil Commodities Expansion Facility will also be a concessionary facility designed to significantly boost local production of exportable commodities.
Continuing, he said the Non-Oil FX Rebate Scheme is a special local currency rebate scheme for non-oil exporters of semi finished and finished produce who show verifiable evidence of exports proceeds repatriation sold directly into the Investors & Exporters window to boost liquidity in the market.
The World Bank and International Monetary Fund (IMF) have been encouraging governments across countries to take steps that would support their economies thrive in the face of the pandemic.
Partnership with state governments
Emefiele also said the apex bank will be working with state governments with interest in building air and seaports terminals to support export of goods to earn dollars for the economy.
He said these policy plan is to support growth by taking unprecedented measures to prevent the economy from going into a tailspin.
“Our first objective was to restore stability to the economy by providing assistance to individual households, SMEs and businesses that had been severely affected by the pandemic, as well as by the lockdown measures,” he said.
According to Emefiele, working with banks and participating financial institutions, the CBN has granted over N3 trillion in intervention loans that have, undoubtedly, been one of the critical ingredients for our economic recovery and employment generation. He said the CBN would be reviewing intervention programmes to ensure that they continue to achieve the desired results.
Banks respond
Commercial banks are adjusting their business plans to include support CBN in achieving the policy implementation plan.
For instance, Fidelity Bank, Access Bank, Zenith Bank and United Bank for Africa have reaffirmed their commitment to support the CBN’s efforts to achieve its goal of $200billion forex reparriation target.
Executive Director, Northern Businesses, Fidelity Bank Plc, Hassan Imam, said bank would continue to take steps to bridge the knowledge gap in the non-oil sector space by facilitating the processes and documentation for the new policy, with the goal of increasing FX repatriation through exportation.
He reiterated his bank’s readiness to support government’s economic imperatives to boost revenue in non-oil sector of the economy.
“As you know Nigeria is an import-dependent economy with so much pressure on our currency and the source of revenue as a nation is petrol dollar. So, the initiative of the CBN is to leverage our non-oil products, especially in agriculture like hibiscus flower, cashew nut sesame and many other products for export,’’ Imam said.
