CBN To Boost Non-Oil Export With RT200 FX Scheme
BY CHINYERE OBIORA, LAGOS – The Central Bank of Nigeria (CBN) has unveiled a new foreign exchange initiative as part of measures to boost non-oil exports and address emerging challenges in the export segment of the economy.
Tagged “RT200 FX programme”, the apex bank says the initiative covers “a set of policies, plans and programmes for non-oil exports that will enable us to attain our lofty yet attainable goal of US$200 billion in FX repatriation, exclusively from non-oil exports, over the next 3-5 years.”
Addressing financial journalists virtually after the Bankers’ Committee meeting, the CBN Governor, Godwin Emefiele, said the programme, which stands for the “Race to US$200 billion in FX Repatriation”, will have five key anchors.
He said these include 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.
According to him, 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 the nation’s non-oil commodities before exporting the same.
He said the Non-Oil Commodities Expansion Facility is a concessionary facility designed to significantly boost local production of exportable commodities, adding that it will be designed to ensure expanded and new factories, financed by the Value-Adding Facility, are not starved of inputs of raw commodities in their production cycle.
On the introduction of the Non-Oil FX Rebate Scheme, Emefiele explained that it is a special local currency rebate scheme for non-oil exporters of semi-finished and finished products with verifiable evidence of export proceeds repatriation sold directly into the I & E window to boost liquidity in the market.
Furthermore, the CBN Governor said the plan to construct/establish a dedicated Non-Oil Export Terminal was in recognition of the perennial problems of port congestion cited by exporters as a major impediment to improved operations and foreign exchange earnings.
This is against the backdrop of statistics from the African Centre for Supply Chain Practitioners as reported by the Financial Times that Nigeria loses about $14.2 billion annually due to congestion at our ports.
Also, the report indicates quite a disturbing where it costs $3,500 to ship a 40-feet container from China to Lagos, which is a distance of 22,000 kilometres, while over $4,000 is put at the cost to move the same container from the port to mainland Lagos, a distance of only 12 kilometres.
In highlighting the benefits that would be derivable from the proposed new port policy, Emefiele expressed confidence “this dedicated port will be capable of creating over 100,000 direct and indirect jobs and would provide a huge boost to our quest for significant improvement in non-oil export earnings in Nigeria.
He said under this arrangement, loans to companies wishing to expand or build new plants that will generate verifiable export proceeds for the economy shall remain at five (5) per cent per annum for 10 years loans, inclusive of two (2) years moratorium.
The Governor also announced the introduction of a Bi-annual Non-Oil Export Summit to hold during the first week of April 2022, adding that the Summit will bring together all the relevant stakeholders in the export business, including bankers, customs officials, the Nigerian Ports Authority (NPA), the Nigerian Export Promotion Council (NEPC), clearing agents, cargo airlines, shipping lines, logistics companies, and insurance practitioners among others.
