New Telegraph

RT200: Nigeria’s quest to grow non-oil exports gathers pace

Going by remarks made at the second edition of the bi-annual RT200 Non-oil Export Summit, which took place in Lagos, last week, the Central Bank of Nigeria’s efforts to boost the country’s ability to earn substantial fx earnings from its non-oil exports are yielding results, writes Tony Chukwunyem

In his speech at the second edition of RT200 bi-annual Non-oil Export Summit, which took place in Lagos, last Tuesday, Governor of the Central Bank of Nigeria (CBN), Mr. Godwin Emefiele, noted that the theme of the event: “RT200 Non-Oil Export Programme: The Journey So Far,” indicated that participants would look at what have been achieved under the programme since the first summit that was held in June and “examine the result of the collaborative efforts by all stakeholders in the export value chain and areas for further improvement and collaboration.”

The second edition of the summit, which is one of the five pillars of the RT200 programme (the others being the Value-Adding Exports Facility, Non-Oil Commodities Expansion Facility, Non-Oil FX Rebate Scheme and Dedicated Non-Oil Export Terminal), was like the first edition, also well attended by stakeholders in the banking industry (including Deputy Governors at the CBN, CEOs of DMBs), the Nigeria Port Authority (NPA), the Nigeria Customs Service (NCS), exporters, as well as players in the logistics space. Just as the first edition of the summit was a forum for Emefiele to list achievements of the RT200 programme since it was unveiled on February 10, the second edition was also an opportunity for the CBN Governor to give an update on the successes recorded under the programme.

Successes

For instance, in his address at the maiden edition of the summit, Emefiele had announced that the CBN released over N3.5 billion through DMBs in rebates to eligible non-oil exporters under the RT200 programme, in the first quarter of this year. The CBN Governor, who called on stakeholders in the non-oil exports space to collaborate with the apex bank and the DMBs to ensure enhanced export operations, which will result in foreign exchange inflows into the country, said the CBN would prefer a situation where it will no longer be selling dollars to DMBs, as the lenders would be able to generate their own dollars to meet the import needs of their customers.

He regretted that most of Nigeria’s current sources of foreign exchange inflows were unreliable, and controlled externally. Emefiele said: “We have all been witnesses to the everchanging fortunes of oil-exporting countries,” adding that in order to insulate the Nigerian economy from such external shocks, stakeholders need to focus on strategies that can help the country earn more stable and sustainable inflows of foreign exchange.”

He said that while the RT 200 programme’s objective of raising $200 billion in non-oil export earnings over the next 3-5 years, might seem unattainable to some people, he was “resolute and determined that we can achieve it,” noting that “many countries that are much less endowed than Nigeria are doing it.” Indeed, in his speech last Tuesday, he announced that rebates to eligible non-oil exporters under the programme had increased to about N81billion.

He also disclosed that Nigeria received a total of $4.987billion as non-oil export inflows under the programme this year, which, according to him, is significantly higher than the $3.190 billion repatriated by non-oil exporters in 2021. Stressing the need for Nigeria to develop its non-oil sector business and earnings capacity, he said most developing nations had since identified export as a leading priority for their indigenous firms and that several countries have developed export-oriented trade strategies and extensive assistance programs to encourage export expansion.

He said: “Nigeria cannot be an exception particularly given the huge natural and material resources endowment she possesses. Therefore, it is not only appropriate, but also makes economic sense to embrace this policy thrust anchored on sound economic policy and proven economic theory.” He also commended commercial banks, the Nigeria Customs Service (NCS), Nigeria Export Promotion Council (NEPC), the Nigerian Ports Authority (NPA), as well as Nigerian exporters for making the programme a success. “When we proposed a rebate payment on every repatriated foreign exchange into the country used for personal expenses or sold at the Investors and Exporters’ (I&E) window, some may have doubted our resolve to meet and sustain the obligation.

“However, events in the last three quarters have shown that when the CBN makes a commitment, it keeps its commitment to the last later. In 2022, a total of $4.987 billion has been repatriated into the country by non-oil exporters, higher than the $3.190 billion repatriated in 2021. Of the amount, only $1.966 billion qualified for the rebate programme, but only $1.559 billion was sold at the I&E window or for own use,” he said.

According to him, now is the time for all stakeholders to work together to position Nigeria on a growth trajectory by taking the diversification of the economy seriously, stating that policymakers must help exporters and the economy by adding value to what the country produces and exports. He disclosed that feedback from lenders indicated interest by exporters in adding value to the products they export, to allow them to benefit from the RT200 programme.

He, thus encouraged more exporters to find ways to add value to their exports so that they too could benefit from the scheme and get greater value for their exports. He also pledged to work more to complement the effort of the Federal Ministry of Industry, Trade, and Investment to boost the country’s non-oil exports. Reiterating the need for a more diversified economy, Emefiele emphasised the need to improve the country’s road infrastructure, with an emphasis on road infrastructure from the ports, to facilitate the ease of transporting goods for export. He restated the CBN’s commitment to strengthening and expanding foreign exchange supply into the market, noting that every stakeholder had a critical role to play in expanding the supply of foreign exchange to the country. Assuring exporters that the Bankers’ Committee and the CBN are ready to partner with them to achieve their export goals and to ensure quick acceleration of the export value chain in Nigeria, Emefiele encouraged others yet to benefit from the many financial programmes introduced by the apex bank to approach their respective banks to explore ways to grow their businesses.

He also urged participants to share innovative suggestions for exploring the non-oil export sector as a more sustainable means of increasing financial flows into the economy and generating employment to spur growth. Highlighting the achievements in the automation and digitization of the trade processes in Nigeria, Emefiele commended the apex bank’s stakeholders, such as the Nigeria Customs Services (NCS), the Nigeria Export Promotion Council (NEPC), the Nigeria Ports Authority (NPA), as well as Nigerian exporters, for their support, noting that all hands must be on deck in finding solutions to more robust export growth in Nigeria. Also speaking at the summit, Deputy Governor, Financial System Stability (FSS) at the CBN, Mrs. Aishah Ahmad, noted that the country earned over N2.5 billion from non-oil exports in the first quarter of 2022. Noting that one of the five pillars of the RT200 initiative was to engage with stakeholders on pertinent issues, challenges and prospects of the non-oil exports value chain, she pointed out that the country’s foreign exchange market has been very susceptible to oil volatilities, remittances and lack of a robust non-oil export sector in the country. In his remarks, the Lagos State Governor, Mr. Babajide Sanwo-Olu, lauded the CBN and the Bankers’ Committee for keeping their promise to keep supporting efforts by the Federal Government and states, especially Lagos, to promote growth in the economy, with emphasis on job creation.

Mr. Sanwo-Olu disclosed that work on the Lekki Deep Seaport had been completed and that the project would be inaugurated by the President in January 2023 to provide enormous opportunities for exporters to ply their trade and improve the export earnings of the country, especially in the non-oil sector. While assuring stakeholders that the Lagos State Government will continue to provide the space and opportunities for businesses to thrive, he urged stakeholders to continue to promote a public-private partnership that will drive growth.

Conclusion

Although, Nigeria is not likely to achieve its non-oil export quest in the short term, participants at the summit said they believe the country is on the right path given the successes recorded under the RT200 programme in less than a year of its inception.

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