Following an effort to diversify the local economy away from predominantly hydrocarbon revenue, Nigeria raked in about $5 billion in non-crude oil exports in nine months, Godwin Emefiele, Central Bank Governor, revealed on Tuesday in Lagos while delivering a keynote address at the second edition of the RT-200 Bi-annual Export Summit.
Non-oil export revenue surpassed $4.99 billion in the first nine months of 2022, he claims. According to Emefiele, the overall inflow from the sector was larger than the $4.19 billion obtained in the entire year of 2021.
Oil is Nigeria’s largest export earner, but a drop in output owing to oil theft and pipeline vandalism, as well as a lack of investment, has resulted in less foreign currency inflows.
“A total of $4.987 billion have been repatriated into the country by non-oil exporters, higher than $4.19 billion repatriated the whole of 2021,” Emefiele said.
In an effort to increase the country’s foreign currency receipts, the CBN launched programs such as naiar4dollar and N65 rebates to exporters who route inflows through the investors’ and exporters’ FX market.
Remember that the CBN has also started a strategy to stimulate the local economy with $200 billion in non-oil exports over the next three to five years.
“Of this amount, only $1.97 billion qualified for the rebate programme, while only $1.56 billion was sold at the Investors and Exporters (I & E) window or for own use,” he said.
Emefiele said that the apex bank paid out about N81 billion in rebates to Nigerian exporters during the period.
“This is a testament to the resolve of the CBN to ensure quick acceleration of the export value chain in the country. I know there have been calls to make all exporters eligible for the rebate, not just limit it to finished and semi-finished products.
“While we see some justification for this, one of the goals of the RT200 programme is to help quicken the process of industrialisation and encourage exporters to earn more from their export business.
“Economists have well-documented a positive relationship between export and industrialisation,” Emefiele said.
The CBN governor said that the bank is committed to strengthening and expanding foreign exchange supply into the market. “You are all important in this national clarion call to expand the supply of foreign exchange to the country.
“For exporters flying the flag of Nigeria in the international market, the Bankers Committee and the CBN stand ready to partner with you to achieve your goals.
“You can benefit from the many financial programmes introduced by the CBN through your bank to growing your business.
“Therefore, I call on this gathering to candidly interact and make constructive and 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.
”This is the time for all of us to work together to reposition Nigeria on a growth trajectory by taking the diversification of the economy seriously.
There is no better moment than now to begin collaborating for the sake of our country. “We must cooperate and work on initiatives to enhance non-oil economic activity,” Emefiele stated.
