CBN Governor Reveals RT200 FX Programme Aims To Raise $200 Billion

The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said that the RT200 FX programme aims to raise US $200 billion in Foreign Exchange earnings in the next five years.

The governor first shared that he is "happy" about the progress the RT200 programme has made in export proceed repatriation since February 2022.

He shared that the RT200 FX programme will ensure stable and sustainable foreign exchange into the market as the inflow will improve and raise US $200 billion in Foreign Exchange earnings from non-oil proceeds in the next five years.

"Available data shows that repatriation due to the programme increased by 40 percent from US $3.0 billion in 2021 to US $5.6 billion at the end of 2022," Governor Emefiele said on Tuesday while addressing the Third RT200 Non-oil Export Summit held in Lagos.

Considering the reports of two previous years, the governor explained that the momentum for the current year is also equally strong.

"In the first quarter of 2023, a total of US $1.7 billion was repatriated to the economy while about $790 million was sold at the I&E window year-to-date," he said, Punch reported. "The balance of the proceeds remained in the Export Domiciliary Accounts of exporters."

He continued, "Please note that proceeds that are not sold at the I&E window cannot and will not be eligible for the rebate. So, we encourage holding their export proceeds in their domiciliary accounts to take advantage of the rebate by selling them at the I&E Window."

The governor noted that CBN is committed to strengthening and expanding foreign exchange supply into the market, adding that everyone present during the event is "important in this clarion call of expanding the supply of foreign exchange inflow into the economy."

Emefiele recalled attending a meeting with shipping lines three years ago, revealing that at that time he had said, "The central bank will be beaming some satellites on undocumented exports."

The governor further shared that he warned the shipping lines that they will be monitored and if any cargo is being exported without documentation, then CBN will penalize them including "placing their accounts on post-no-debit (PND)."

"We have so far not done anything like that just because we feel that the shipping lines will be responsible to do what is right," he added, TheCable reported. "But, if we do not see the kind of cooperation that we expect, I'd have to insist that we do what we need to do."

Aside from this, CBN announced on Monday that they will sanction those banks that assist unlicensed foreign firms, adding that representative offices of foreign banks in Nigeria should not engage directly in any financial transaction.

However, CBN allowed these offices to do research activities in Nigeria on behalf of the foreign parent company or brand. According to the new guidelines, the representative offices of foreign parent companies are supposed to comply within 180 days.

To improve the country's economy, the government approved blockchain technology in Nigeria last week.