But the irony, however, is that the sector, promising as it is, remains undermined by structural challenges alongside the inconsistency in government policies. With the race to $200 billion in FX Repatriation programme by the Central Bank of Nigeria , the organised private sector is hopeful that Nigeria’s trade deficit may be reduced and foreign reserves boosted. FEMI ADEKOYA writes.
With COVID-19 revealing the challenges of a mono-product economy, resource-rich countries have been forced to shift gears swiftly. In Nigeria’s case, it is more of double jeopardy as oil production, both in low and high price regimes, has remained challenging, leaving the country to explore borrowing options.
The RT200 programme has five key anchors: value-adding exports facility, non-oil commodities expansion facility, non-oil fx rebate scheme, dedicated non-oil export terminal and bi-annual non-oil export summit. The fourth anchor, which will involve the building of dedicated non-oil export terminals, seeks to hasten the export process. To achieve its realisation, the CBN has called on state governments with existing ports to establish a dedicated export terminal and infrastructure network. States with current seaports in Nigeria include Lagos State, Rivers State, Cross River State and Delta State.
“The Race to $200 billion in FX Repatriation programme requires the right policies, critical export infrastructure, international trade diplomacy, and adequate funding to achieve the desired results within the stipulated period.” Also commenting, Dr Muda Yusuf, CEO, CPPE, said that the RT200 programme is commendable as it would go a long way in affecting the economy tremendously if properly managed.