The Lagos State Governor, Mr Babajide Sanwo-Olu has commended the Central Bank of Nigeria (CBN), for the significant increase recorded in non-oil export repatriation, and for hosting its maiden edition of the biannual non-oil export summit in Lagos, the commercial hub of Nigeria.
Speaking on Thursday in Lagos, Sanwo-Olu expressed optimism that the Lagos sea port at the Free Trade Zone in Ibeju Lekki Lagos, will soon become operational to ease pressure on Apapa Port and improve port logistics for exporters.
Earlier in his opening remarks, the CBN Governor Mr Godwin Emefiele said that the bank in April 2022, released a total of N3.5 billion non-oil exports rebate to exporters through the banks, in the first quarter (Q1)2022.
He also added that the CBN would like to see a situation where it will stop selling dollars to banks, but where the banks will be able to generate their own dollars to meet the import needs of their customers.
The theme of the summit is: “Setting the Roadmap towards Achieving RT200 and Non-Oil Export for Development,” and it focused on the present situation in the economy, the commitment to addressing the challenges as well as driving the development and improvement of the non-oil export sector.
Launched on February 10, 2022, by the apex bank as part of measures to reduce the increasing demand for foreign currency by importers, the Race to US$200 billion in Foreign Exchange (FX) Repatriation (RT200) programme launched in February this year has been designed to reduce the excessive pressure on the exchange rate.
Emefiele, at the summit organized by the CBN and bankers committee, called on stakeholders in the non-oil space to collaborate with the CBN and the banks to ensure enhanced export operations, which will result in foreign exchange inflows into the country.
According to him, disruptions due to the COVID-19 pandemic, delays in global logistic value chains and local security challenges have exerted undue pressure on Nigeria’s economy, making macroeconomic management very difficult.
These factors impacted oil production and prices, disrupted trade and exports, reduced capital inflows and impacted food production. They also exposed the fragility of the Nigerian economy and the need for a more diversified economy.
Yet, in the face of these challenges, the Central Bank of Nigeria has been confronted with rising demand for foreign exchange for both goods, services, and other needs.
With this unabating demand he added, the Bank has been working to manage both the demand and supply side to meet foreign exchange obligations.
These problems call for urgent design and steadfast implementation of other supportive, structural, and complementary policies that are broad-based, coordinated and focused on complementing the work of the monetary authority he emphasized.
“you will recall that after the Bankers’ Committee meeting of 10 February 2022, I personally unveiled the RT200 FX Program, which is an initiative of the Bankers’ Committee aimed at raising US$200 billion in non-oil export earnings over the next 3-5 years.
“I specifically stated that the program will be anchored on five pillars, namely: Value-Adding Exports Facility; Non-Oil Commodities Expansion Facility; Non-Oil FX Rebate Scheme; Dedicated Non-Oil Export Terminal; Biannual Non-Oil Export Summit.” He said.
He regretted that most of Nigeria’s current sources of foreign exchange inflows were unreliable, and controlled externally.
For example, “we have all been witnesses to the ever-changing fortunes of oil-exporting countries. “Even those that have been reputed to manage their oil proceeds well also suffer from major shocks once oil prices plummet,” he stated.
In order to avoid these sudden adjustments to the economic life in Nigeria, Emefiele said stakeholders need to focus on strategies that can help the country earn more stable and sustainable inflows of foreign exchange.
” As things now stand, we really have very little choice left but to look inwards and find innovative solutions to our problems.
“We would need to follow the best practices of other countries and ensure that we protect ourselves a little bit from factors that are beyond our immediate control.
In continuation of the implementation of the RT:200 Programme, he said the summit is meant to harness ideas on how to increase the value and volume of export in the country, and improve the availability of foreign exchange therefrom.
He charged presenters, panellists and participants to put on their thinking caps and come up with even more innovative solutions to the problems of non-oil exports in Nigeria.
A summit that will guarantee that for every complaint, problem, issue, challenge or difficulty that is presented or identified, there will be one or several agencies or practitioners that can articulate options for solving that problem, he further stated.
” I strongly believe that the ideas harnessed from this maiden summit would be invaluable in helping us reach our ultimate goal of US$200 billion in non-oil exports over the medium term,” the CBN governor emphasized.
He said this goal itself may appear unattainable to some, but many countries that are much less endowed than Nigeria are doing it. “Consider for example that agriculture exports alone from the Netherlands were about US$120 billion last year. Yet, the Netherlands has a land mass of about 42,000 square kilometres, which is much smaller than the landmass of Niger State alone, which sits at over 76,000 square kilometres.
He concluded: “This is the time for us as a Banking Community to do more and support exporters who have been flying the flag of Nigeria in the international market space. There is indeed no better time than now!”
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