RT 200 FX: EMEFIELE’S SCORECARD INDICATES HOPE FOR FOREX INFLOW

The Race-To-$200 billion (RT 200) initiative has reached a significant milestone, pointing to future success as the Central Bank of Nigeria (CBN) works harder to achieve the goal.

As exporters are encouraged to repatriate their export proceeds to increase the availability of foreign exchange, the initiative aims to raise $200 billion in FX earnings through non-oil proceeds over the following three to five years.

Speaking to the crowd at the second RT200 Export Summit, which took place at the Eko Hotels in Lagos on November 29, 2022, CBN Governor Mr. Godwin Emefiele revealed that non-oil exporters had brought home a total of $4.987 billion in 2022. This amount is $56.4% more than the $3.19 billion that was returned in 2021.

The program has a Non-Oil Exports Proceeds Repatriation Rebate Scheme that encourages non-oil exporters to repatriate and sell export proceeds on the official FX market. According to the plan, the CBN gives authorized dealer banks a rebate of N65 for each dollar repatriated and sold in the Investors and Exporters (I&E) window for use by third parties. For qualified transactions only, the CBN additionally offers a reimbursement of N35 for every dollar repatriated and sold into I&E for own use, providing the spread does not exceed 10 kobo.

According to Emefiele, the CBN has given exporters rebates of N81 billion in 2022 for returning their export revenues in accordance with the RT 200 FX policy. In order to protect the Nigerian economy against shocks and FX shortages, it was necessary to create new methods targeted at generating more appropriate and sustained inflows of foreign currency.

By reaching this milestone, non-oil exporters will have brought back a total of $4.987 billion into the nation in 2022, surpassing the $3.19 billion they brought home in the previous year, according to Emefiele.

Only $1.966 billion, according to the breakdown of the statistics he provided, qualified for the rebate scheme, and only $1.559 billion was sold at the I & E window or for personal use.

The CBN has also given hard-working Nigerian exporters rebates totaling roughly N81 billion. This demonstrates the CBN's determination to ensure a rapid acceleration of the nation's export value chain, he said.

According to Emefiele at the ceremony, the transparency and success of the program during its first nine months of existence has piqued the curiosity of exporters from other regions who want to be part of the program.

He stated, We are already hearing from banks that exporters are interested in adding value to the products they export in order to take advantage of the program. We are pleased that this is taking place, and we encourage more exporters to look for ways to improve the value of their goods in order to not only take advantage of the scheme but also to gain from it.

It was encouraging to hear Emefiele address one of the issues preventing export promotion, namely the weak procedures and subpar quality standards that make Nigerian exports unattractive.

Since the CBN boss acknowledged that “we have achieved some gains in automation and digitization of the trade processes,” it is laudable that focus is now being directed to the creation of infrastructure and processes for enhancing trade performance.

As of right now, the Trade Monitoring System is fully automated and connected with the SONCAP, NAFDAC, and Marine insurance certifications. Additionally, the NPA eCall Up System will soon be incorporated, and we are now working with the Quarantine Service to incorporate their permits and certificates into the system.

Other eNXP improvements include SGD integration and the creation of the PIA portal, both of which attempt to digitise the process of PIAs issuing Clean Certificates of Inspection (CCIs) and make it simpler for exporters to schedule inspections. All of these, according to Emefiele, were made feasible by the stakeholders' shown interest in and dedication to the program's success.

It was a result of the challenge Emefiele issued during the first summit, which was held on June 16, 2022, at the same location. Emefiele had emphasized that the gathering must focus on problem-solving.

“I am pleased to note that many of the agencies, businesses, financiers, and practitioners in the non-oil export area in Nigeria are present here,” Emefiele stated at the previous event. While I extend a warm welcome to everyone here, it is my goal that this meeting will focus on finding solutions.

A summit that will ensure that there will be one or more agencies or practitioners who can articulate solutions for each complaint, problem, issue, challenge, or difficulty that is presented or identified. I am convinced that the insights gained from this inaugural summit will be crucial in assisting us in achieving our long-term objective of US$200 billion in non-oil exports.

The RT200 FX program is divided into five sections: The Value-Adding Exports Facility, the Non-Oil Commodities Expansion Facility, the Non-Oil FX Rebate Scheme, the Dedicated Non-Oil Export Terminal, and the Biannual Non-Oil Export Summit are the main pillars.

The RT200 FX program is divided into five sections: The Value-Adding Exports Facility, the Non-Oil Commodities Expansion Facility, the Non-Oil FX Rebate Scheme, the Dedicated Non-Oil Export Terminal, and the Biannual Non-Oil Export Summit are the main pillars.

According to the research, the sector experienced positive GDP growth in the third quarter of 2022 due mostly to the following sectors: trade, transportation (road transport), financial and insurance (financial institutions), agriculture (crop production), and real estate.

At the nation's ports, the government has been fighting obstacles that have prevented effective export procedures. This led to the RT 200 program's introduction of dedicated ports. A third component of the RT 200 Program, the development and creation of a dedicated Non-Oil Export Terminal, is planned in consideration of the enduring issues with port congestion, which exporters highlighted as a significant barrier to enhanced operations and foreign exchange revenues.