The Central Bank of Nigeria (CBN) stated that the RT200 FX Programme has begun to provide the intended results despite the Naira’s huge decline.
Mr Osita Nwanisobi, CBN’s Director, of Corporate Communications, announced this on Thursday at the apex bank’s special day at the 17th Abuja International Trade Fair.
The CBN RT200 FX Programme aims to increase earnings from consistent and sustained foreign exchange inflows. Nonetheless, a cursory inspection of the data reveals that the exchange rate has depreciated significantly since the policy’s debut in February 2022.
The Naira was trading at N575/$ against the dollar at the time the RT200 FX Programme was introduced. The Naira is now trading around N730/$.
What the CBN is saying
Nwanisobi, who was represented by Samuel Okogbue, the Acting Director, Corporate Communications, said “The CBN, in collaboration with the Bankers’ Committee, in February, initiated the RT200 FX Programme aimed at boosting earnings of stable and sustainable inflows of foreign exchange.”
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He added, “our records show that the initiative has started yielding the expected result.”
“Importers and exporters have been taking advantage of the incentive of N65 for every dollar repatriated and sold at the I&E window. They also get N35 for every dollar repatriated for their use on eligible transactions,” he said.
He also stated that the CBN had started initiatives geared at improving the fortunes of SMEs throughout the years.
He mentions the SMEs Credit Guarantee Scheme (SMECGS) and the Micro, Small, and Medium Enterprises Development Fund (MSMEDF).
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He said, “There are also the Youth Enterprises Development Programme and the Agribusiness/Small and Medium Enterprises Scheme (AGSMEIS). Similarly, the CBN initiated Entrepreneurship Development Centres (EDCs), National Collateral Registry (NCR), the Creative Industry Financing Initiative (CIFI), the Targeted Credit Facility (TCF) and the Nigerian Youth Investment Fund (NYIF),”
Another initiative he mentioned was the Tertiary Institutions Entrepreneurship Scheme (TIES).
He added that the apex bank had also taken attempts to build a market for non-oil goods.
According to the director, the apex bank has given N66.99 billion to 12 new industry and agriculture projects under the Real Sector Support Facility (RSSF).
He stated that the total disbursement under RSSF was N2.10 trillion, which was distributed to 426 projects across the country.
“Recently, N20.17 billion was disbursed to 14 projects in healthcare, manufacturing and services, bringing the cumulative disbursement under the 100 for 100 Policy on Production and Productivity (PPP) to N93.39 billion to 62 projects,” he said.
What you should know
The initiative which is under the apex bank’s RT200 FX Programme which stands for the “Race to US$200 billion in FX Repatriation”, is a set of policies, plans and programmes for non-oil exports that will enable Nigeria to attain a lofty yet attainable goal of US$200 billion in FX repatriation, exclusively from non-oil exports, over the next 3-5 years.
The RT200 Programme is expected to have 5 key anchors namely; Value-Adding Exports Facility, Non-Oil Commodities Expansion Facility, Non-Oil FX Rebate Scheme, a Dedicated Non-Oil Export Terminal and Biannual Non-Oil Export Summit
Based on the CBN guidelines for the RT200 scheme, which entails the apex bank paying N65 for every US$1 repatriated and sold at the Investors and Exporters Window.
In April, Godwin Emefiele, the Governor of the Central Bank of Nigeria, ordered the immediate release of N3.5 billion in rebates to 150 exporters who took part in the Race to $200 billion scheme, otherwise known as RT200 FX Programme.