HomeBusinessRT200 policy attracting more...

RT200 policy attracting more export commodities – CBN


By Chinwendu Obienyi

The Central Bank of Nigeria (Plc) at the weekend, disclosed that its RT200 policy has begun to attract more export commodities.

This was even as the apex bank revealed that the policy will again undergo series of examination and verification exercise to ensure the third quarter (Q3) rebate would be paid to exporters by the end of September.

The Principal Manager, Trade and Exchange Department, at CBN, Anne Ezekannagha, stated this at the 2022 workshop of the Finance Correspondents Association of Nigeria (FICAN) with the theme: “Boosting Domestic Capacity for Sustainable Export Earnings” which held in Lagos. The RT200 FX programme is an initiative of the CBN that aims to raise $200 billion in forex earnings from non-oil proceeds over the next three to five years. 

Speaking during a panel session, Ezekannagha, noted that a lot of exporters do not repatriate their proceeds adding that this is what RT200 is trying to do.

According to her, since the conception of the RT200, the figures have improved greatly. “The rebate are to be paid quarterly and currently, we have approved rebate for two quarters; the first and second quarter 2022. Hopefully, by the end of September, there would be another series of examination and verification exercise so that the third quarter rebate would be paid.

We have seen significant improvement not just in the figures that are being repatriated but also in the number of exporters willing to come to the formal sector. A lot of our exports have been happening informally. With this scheme, we are noticing not just the increase in figures but also in the increase of commodities that we are exporting. For example, in the solid mineral sector, we are seeing more players coming to the formal sector to report their export and participate in the RT200”, She said.

Meanwhile, Deposit Money Banks (DMBs) have called on the FG to create a friendly export policy to ensure the RT200 scheme achieves 100 per cent success.

Presenting his paper titled “Boosting Domestic Capacity for Sustainable Export Earnings- the UBA Perspective, the Deputy Managing Director of the United Bank for Africa (UBA), Muyiwa Akinyemi, disclosed that only 200 exporters were responsible for 95 per cent of the $4.2 billion the country earned from non-oil export in 2021.

He noted that the $4.2 billion recorded in 2021 did not include informal exports largely in the wholesale trading in some sectors such as information technology, entertainment and solid minerals while adding that the bank facilitated $1.34 billion (31 per cent) in non-oil export volume in 2021, confirming the bank’s status as Nigeria’s number one export bank for three years running.

Akinyemi said, “It is very important that the government as well as regulators create a friendly market policy and also harness data to boost our exports.

They also need to facilitate capital flows to the commodities exchange. This will aid the success of the RT200 policy.

In her keynote address during the workshop, the Managing Director of the Fidelity Bank Plc, Nneka Onyeali-Ikpe, urged Nigerian commodities exporters to switch to the export of value-added processed commodity items to earn more foreign exchange and improve Nigeria’s balance of trade.

Onyeali-Ikpe, who was represented by the Divisional Head, Exports and Agriculture at Fidelity Bank, Isaiah Ndukwe, said transitioning to value-added exports would provide immediate revenue uplift even without expansion of the primary commodity supply side.

She said a step forward was to move from cocoa beans to cocoa butter or powder and also move raw cashew nuts to kernels, to triple the foreign exchange revenues Nigeria earns from these commodities.

Onyeali-Ikpe said, “Most of our raw cashew nut exports go to Vietnam where more value is added to it and then re-exported. In 2020, Vietnam imported $1.5 billion worth of raw cashew nuts from Africa, added value to them and exported $3 billion worth of processed kernels. The uplift of $1.5 billion represents jobs and tax revenue opportunities that we could have created if this value addition was done in Africa.

At three times increase in revenue, Nigeria can move cocoa exports to $3 billion per annum (currently about $1 billion) and cashew to $600 million (currently about $200 million) in the short term to medium term. If we then double the capacity of our plantations as well as processing capacity, we can exponentially move the numbers”.

According to her, “this is not a reinvention of the wheel. it is a tried and tested lever for sustainable economic development. This is the same model that was used by the Association of South-East Asian Nations (ASEAN) that is Malaysia, Indonesia, Thailand and Vietnam to transform their economies into global manufacturing powerhouses.”

- A word from our sponsors -

spot_img

Most Popular

More from Author

There’s still hope for Nigeria at 62, says Uzodimma – VELOXNEWS

Gov. Hope Uzodimma of Imo says Nigeria is “not without...

APC postpones inauguration of Presidential Campaign Council – VELOXNEWS

The All Progressives Congress (APC) has shifted the inauguration of...

Yola bags Pan African Icon of sports award – VELOXNEWS

Alhaji Abba Yola has bagged the prestigious Thomas Sankara Leadership...

- A word from our sponsors -

spot_img

Read Now

There’s still hope for Nigeria at 62, says Uzodimma – VELOXNEWS

Gov. Hope Uzodimma of Imo says Nigeria is “not without hope”, in spite of its myriads of challenges, as the country marks the 62nd independence anniversary on Oct I.Uzodimma said this on Sunday at the Maria Assumpta Catholic Cathedral Owerri during a special Church service to...

APC postpones inauguration of Presidential Campaign Council – VELOXNEWS

The All Progressives Congress (APC) has shifted the inauguration of its 422- member Presidential Campaign Council (PCC), earlier scheduled for Monday, Sept. 26, to Wednesday, Sept. 28.Mr Bayo Onanuga, Director, Media and Publicity, APC PC, disclosed this in a statement on Sunday night in Abuja.“The APC...

Yola bags Pan African Icon of sports award – VELOXNEWS

Alhaji Abba Yola has bagged the prestigious Thomas Sankara Leadership Prize for Pan – African Icon of Sports Renaissance Award in honour of his leadership ideology and high administrative prudence in the field of sports.Yola, the Chief of Staff to the Minister of Youth and Sports...

Renowned environmentalist, Nnimmo Bassey counsels Lagos Govt to respect rights of Makoko fishing community – VELOXNEWS

By Daniel KanuEminent environmental activist, Dr. Nnimmo Bassey, has asked the Lagos State government to respect the Makoko residents’ rights to shelter and livelihood.This he said is central to the survival and wellbeing of the people.Bassey made the call during a community consultation parley with Makoko...

NFF writes FIFA, wants elections postponed

The Nigeria Football Federation (NFF) has written to the Federation of International Football (FIFA) in a fresh bid to postpone the forthcoming election slated for September 30. In the letter signed by General Secretary, Muhammed Sanusi, the football body is accusing the Federal Government of interfering in...

Diri, INC resolve Tompolo, Asari, Ateke rift

From Femi Folaranmi, Yenagoa and Juliana Taiwo-Obalonye, AbujaBayelsa State governor, Douye Diri, alongside leaders of  the Ijaw National Congress (INC) and other stakeholders have waded into the controversy arising from the N48 billion pipeline surveillance contract awarded by the Federal Government to Chief Government Ekpemupolo, also...

I’ll ensure free medical services to 100m poor Nigerians

By Chinelo Obogo and Adanna Nnamani, AbujaPresidential candidate of the Labour Party (LP), Mr. Peter Obi, has promised to ensure that 100 million poor Nigerians have access to free medical services through an integrated health insurance scheme if elected.He spoke  at Success Conference in Abakiliki, Ebonyi...

Without power, Africa can’t develop

Former President Olusegun Obasanjo has disclosed that without adequate electric power, all efforts and energy to develop Africa economically and socially, will not materialise. Obasanjo and other world leaders spoke on Friday during the FIN International Trade and Investment Forum, a side line event at United Nations...

PFN disowns Bishops for holding meeting with Tinubu

From Noah Ebije, Kaduna, Paul Orude Bauchi, Godwin Tsa, Abuja and Gyang Bere, JosThe Pentecostal Fellowship of Nigeria (PFN) has disowned the “Pentecostal Bishops Forum of Northern Nigeria” for holding meeting with Bola Tinubu, presidential candidate of the All Progressives Congress (APC).Deputy National Secretary of the...

7 burnt in Lagos road accident

By Emma NjokuNo fewer than seven people lost their lives yesterday when a commercial bus reportedly caught fire in the Iyana Oworo area of Lagos State.Permanent Secretary, Lagos State Emergency Management Agency (LASEMA), Dr Olufemi Damilola Oke-Osanyintolu, who made the disclosure in a statement, yesterday, said...

Senate, PDP set for showdown on INEC nominees

From Fred Itua and Ndubuisi Orji, AbujaThe Senate and Peoples Democratic Party (PDP) may be heading for a showdown on plans by the upper legislative chamber to confirm five residents electoral commissioners (RECs), accused of belonging to All Progressives Congress (APC).In separate interviews with Daily Sun,...

Over 60 customers emerge winners in Dangote cement N1bn

The Dangote Industries adjudged the ‘Most Valuable Brand’ in Nigeria for its ability to deliver on its promises to consumers of its products continues to live up to the mandate, as over 50 winners have emerged as instant Mmllionaires of Dangote Cement Plc. in the North East. A...