INFLATION: FG, NIGERIA REQUESTS THE RETURN OF EXPORT EARNINGS AND INCREASES FOREIGN EXCHANGE

The words foreign [currency] and exchange are combined to form the acronym forex (FX). The process of converting one currency into another for a variety of purposes—usually trade, tourism, or commerce—is known as foreign exchange. The Bank for International Settlements, a global bank that serves national central banks, stated in a 2022 triennial report that the daily global volume of FX trading hit $7.5 trillion in 2022.

Currencies are traded on the foreign exchange market. The most distinctive feature of this global market is the absence of a central marketplace. Rather, over-the-counter (OTC) electronic currency trading is carried out. This means that instead of taking place on a single, centralized exchange, all transactions take place among dealers throughout the globe via computer networks.

Dr. Doris Uzoka Anite, Minister of Industry, Trade, and Investment, stressed the importance of repatriating export proceeds to stabilize the nation's foreign exchange pricing regime during a summit of stakeholders in the oil and gas sector in Abuja over the weekend.

To mitigate the rising rate of inflation in Nigeria and increase foreign exchange inflow, the Federal government is proactively seeking the repatriation of all oil and gas product export earnings.

The Minister of Industry, Trade, and Investment, Dr. Doris Uzoka Anite, stressed the importance of repatriating export revenues to stabilize the nation's foreign exchange pricing regime during a summit of stakeholders in the oil and gas sector over the weekend in Abuja.

Anite explained, It is legally required for export revenues to be returned to the country of origin. Three fundamental legislative provisions mandate the repatriation of export revenues. Promoting commerce is my responsibility, and I am responsible for oil and gas trading. Although I control how operators trade, I have no say in how they make their goods. My job is to import and export and to keep the country's balance of payments in check. The payment balance is crucial; If export earnings are returned, the nation's economy will expand and we will have dollars.

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She went on to say that managing currency rate volatility will be aided by repatriating the earnings from oil and gas exports. “We need to boost the economy and stop this downward trend right now because the President declared a state of emergency on revenue, including foreign exchange revenue,” the speaker said.

The Central Bank of Nigeria's Director of Trade and Exchange, Dr. Hassan Mahmud, emphasized the vital role that the oil and gas industry plays in carrying out the CBN's mandate. Mahmud emphasized that, while it is impossible to print dollars, conditions can be set up to allow dollars to enter the nation, which will help to moderate the volatility of foreign exchange from the supply side.

To cut down on delays, Oloyede Adekunle, Nigeria's Customs Controller for Import and Export, underlined the significance of automating the export permission application process.

It was decided at the end of the conference to form a technical committee in order to work on technical integration and develop the SLA (Service Level Agreement). In addition, the committee will write to the CBN requesting that associations set up a self-regulatory structure and including the Federal Ministry of Industry, Trade, and Investment (FMITI) in the Export Proceeds Repatriation Reconciliation Committee. Furthermore, an expedited fee structure for export permit approval would be implemented, and oil exporters would be notified of the extension of the compliance deadline.