The Central Bank of Nigeria (CBN) has expressed hope that export earnings for the rebate will hit the $1 billion mark in the fourth quarter of 2022.
According to NAN, this was announced by the CBN Governor, Godwin Emefiele, while speaking at a press conference on the outcome of the 13th annual Bankers’ Committee Retreat in Lagos.
The retreat with the theme, ‘Increasing the productive base of the Nigerian economy and non-oil export earnings,’ provided a unique platform for the Committee on Banks to conduct a recap of the major banking system activity of the year.
It also gave them an opportunity to look at some of the global and local developments that they think will affect the banking and financial system landscape in Nigeria in the coming year.
Progress so far: Emefiele who said a lot of progress has been made in generating non-oil export revenues in 2022, noted that the RT200 program started in February 2022.
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- He said, ‘During the six weeks in February and March when the program began, the N65 rebates provided export earnings repatriating rebates of about $62 million.
- “This is not export income without getting rebates. We must not forget that the rebate is only for processed goods. So, at the time we added processed and unprocessed goods such as unprocessed cocoa and cashew, we actually ran up almost $1 billion in the third quarter.
- “And we’re starting to think that we need to continue to ramp up. We hope that in the fourth quarter, which we’ll see in January, we hope that we can hit over a billion dollars in revenues of exports and returns to be eligible for rebate.
Before the RT200: Emefiele recalled that the apex bank threatened banks to start sourcing for foreign exchange to meet the needs of their customers and not fully rely on sources from the CBN, before the RT200 started.
- He said: “But looking at the progress made so far, we’re talking about $62 million plus $622 million plus $850 million, we’re talking almost two billion dollars.
- “Currently, we think that with the good progress and based on the progress made so far, the CBN will continue to support the market with foreign exchange, despite its difficulties.
- “We will continue to support the market while the banks themselves continue to increase their own sources of non-oil exports that earn foreign currency through repatriation, which they can use to finance the needs of their customers.’ ‘
Minimum annual lending to exporters: the CBN governor noted that the Bankers’ Committee has also announced a minimum annual lending of N500 billion to exporters.
He explained that there is a need to continue to support exporters who may need facilities even to bring equipment where they can process their goods and make them a high standard to qualify for export. in the country and get a higher price to increase the volume. in export repatriations.
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- He said, “So, the Committee on Banks decided that every year and it should be measurable, the entire banking industry should provide at least a minimum of N500 billion loans to export oriented companies that generate measurable which are export receipts, non-oil export revenues that can complement what the CBN does.’‘
He added that the CBN will come up with modalities where it insists that bank A must provide a minimum of X amount of export loans and naturally the big banks must take a bigger share of this pie.
For the records
- RT200 FX Program which means the “Race to US$200 billion in FX Repatriation”a set of policies, plans and programs for non-oil exports that will enable Nigeria to achieve the lofty but achievable goal of US$200 billion in FX repatriation, exclusively from non-oil exports , in the next 3-5 years.
- Recall that in February 2022, the CBN officially announced the launch of the RT200 FX Program’.
- The program has 5 key anchors namely; Exports Value Addition Facility, Non-Oil Commodities Expansion Facility, Non-Oil FX Rebate Scheme, Dedicated Non-Oil Export Terminal and Biannual Non-Oil Export Summit
- Emefiele pointed out that the decision to launch the program is in line with the apex bank’s new commitment to increase the country’s foreign reserves through earnings from non-oil exports.
- The CBN intends for the new RT200 FX Program to be similar to the Naira4Dollar scheme for diaspora remittances, which offers recipients of diaspora remittances through the CBN’s International Money Transfer Operators to be paid N5 for every $1 received as remittance inflow.