The Central Bank of Nigeria (CBN) has revealed at a press briefing on the launch of the bank’s new forex repatriation scheme, RT200 held after the Bankers’ Committee meeting on Thursday in Abuja that it will stop the sale of foreign exchange to Deposit Money Banks by the end of the year.
The CBN Governor, Godwin Emefiele, stated that banks must begin to source their forex from export proceeds, hence the need to support non-oil exporters in the country.
He pointed out that the decision was in line with the apex bank’s new commitment to boost the country’s foreign reserves through proceeds from non-oil exports.
RT200 which stands for Race to $200bn is a set of policies, plans and programmes for non-oil exports that will enable the country to generate $200bn in forex repatriation, exclusively from non-oil exports, over the next three to five years, according to the governor.
Under the programme, the apex bank will provide concessionary and long-term loans for businesses interested in expanding existing plants or building new ones for the sole purpose of adding significant value to the non-oil commodities before exporting same.
READ ALSO: Banks, Telcos, Passport Issuance Suffer as NIMC Portal Breaks Down
According to the CBN Governor, the loans would have 10-year tenure, with a two-year moratorium and an interest rate of five per cent. Similar to the naira for dollar programme, this programme, would also entail a forex rebate scheme where the exporters will be paid N5 for every dollar they put into the economy.
“Today, we are also announcing the introduction of the non-oil FX rebate scheme, a special local currency rebate scheme for non-oil exporters of semi-finished and finished produce who show verifiable evidence of exports proceeds repatriation sold directly into the I&E window to boost liquidity in the market,” Emefiele revealed.
Exporter cited port congestion as major impediment to improved operations and foreign exchange earnings. In recognition of this, Emefiele noted that the CBN plans to establish a dedicated non-oil export terminal. He also said that the Bankers’ Committee would be partnering with state governments that have existing ports to achieve this goal, adding that the committee would provide a significant part of the funding needed for the project.
The apex bank also announced that it would host the maiden event of a Biannual Non-Oil Export Summit which will hold in the first week of April.
Emefiele however noted that the banks might be able to access a portion of their forex demands from the CBN if they could provide impressive exports promotion records.
He said, “Or maybe if they are lucky, if the bank approaches us for forex, if we see their exports records, we will give them five or 10 per cent of that request.”
The governor also announced that interest rates on its intervention loans which were expected to revert to nine per cent by March 1, would remain at five per cent until March 1, 2023.
He further clarified that “Although interest rates on our various intervention facilities were expected to revert to nine per cent effective March 1, 2022, we are announcing that the rates would remain at five per cent for another year in view of the promising trajectory we have established in economic growth and job creation.”
In effect, the concessionary interest rate of five per cent on our intervention facilities would now be extended until March 1, 2023.
