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HomeTop NewsCBN says introduction RT200 scheme boosts non-oil export proceeds repatriation

CBN says introduction RT200 scheme boosts non-oil export proceeds repatriation

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The Central Bank of Nigeria (CBN) has declared that its RT200 policy has started yielding positive results with more commodities now included in the country’s export ledger boosting the potential of raising up to $200 billion in foreign exchange earnings from non-oil proceeds.

Disclosing this in Lagos on Saturday at the yearly workshop of the Finance Correspondent Association of Nigeria (FICAN), Principal Manager in the CBN Trade and Exchange Department, CBN, Anne Nnenna Ezekannagha noted that there significant shift in the repatriation of export proceeds into the country since the introduction of the scheme.

“RT200 is an initiative that was launched by the CBN and is currently, anchored on our rebate scheme. So, the idea is that we want to encourage exporters to repatriate their funds. A lot of exporters do not repatriate their funds and the RT200 is to encourage the repatriation of non-oil proceeds.

“We have seen a significant improvement not just in the figures that are being repatriated, but also in the number of exporters that are willing to come to the formal sector. Because a lot of our export has been happening informally, but with this scheme, we have found that a lot more players in the export sector are willing to come to the formal sector.

“So, we are also noticing not just the increase in the figures but also in the increase of the commodities that we are exporting that was reported earlier. Like the solid minerals, we are seeing more in the solid minerals and we are seeing more players in that sector, coming into the formal sector to report their exports and participate in the RT200,” said Ezekannagha at the workshop.

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The apex bank noted that the scheme which incentivises export earnings has seen a record entry of players in the solid mineral space.

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. A major anchor of the programme is the Non-Oil Export Proceeds Repatriation Rebate Scheme.

On his part, the United Bank for Africa (UBA) Deputy Managing Director, Muyiwa Akinyemi said that 200 exporters accounted for 95 per cent of the $4.2 billion Nigeria earned from non-oil export in 2021.

According to the National Bureau of Statistics (NBS), Nigeria recorded a total of $4.2 billion last year from informal exports largely in wholesale trading in some sectors such as information technology, entertainment and solid minerals.

Akinyemi said: “Top 200 non-oil exporters control over 95 per cent of the $4.2billion of the industry volume in 2021.” He added that the federal government had projected to increase foreign exchange earnings from non-oil to $200 billion within three to five years.

He also disclosed that “major items of non-oil exports including cocoa, cashew, sesame seeds, hibiscus, fertilisers/chemicals, tobacco, hides and skin accounted for 85 per cent of total export.”

Akinyemi stated that the UBA “facilitated $1.34 billion (31 per cent) in non-oil export volume in 2021,” saying that the feat confirmed the UBA’s status as Nigeria’s number one export bank for three years running.

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