LCCI: CBN’s RT200 FX scheme commendable but needs right mechanisms to thrive

Lagos Chamber of Commerce and Industry (LCCI) says the newly introduced forex repatriation scheme needs adequate mechanisms to achieve desired results.

Last week, the Central Bank of Nigeria(CBN) introduced RT200 FX programme, an initiative to generate $200 billion from non-oil exports and increase foreign reserves over the next three to five years.

In a statement issued on Monday, Chinyere Almona, LCCI director-general, said the programme required critical export infrastructure, international trade diplomacy, and adequate funding.

Commending the scheme, she said there was the need to enlighten the public, experienced and potential exporters, on the terms and conditions around its facilities.

“One major challenge in Nigeria’s export chain is the unstructured procedures that cause delays, corruption, and rejection of exports,” the statement reads.

“These facilities should be well directed to process targeted products in which Nigeria has some comparative advantage such as sesame, cashew, cocoa into finished goods.

“The reason for the low FX revenue from exports is due to the export of primary unprocessed commodities.

“Nigeria must take bold steps to establish a trading system that supports the seamless flow of trade.

“It must establish the necessary infrastructure, create needed awareness toward exploring the African Continental Free Trade Area (AfCFTA).”

The LCCI DG, however, urged the CBN to exercise caution in its interventions in various sectors of the economy as this indicated an element of a dysfunctional economic system.

She noted that under the CBN’s targeted credit facility, the apex bank had intervened with more than N2 trillion support to agriculture.

Almona advised the CBN to make more investment in critical infrastructure to ensure the repayment of the facilities.

“Currently, there are many credit facilities extended to farmers and manufacturers that may suffer non-repayment due to the high cost of production,” she said.

“Beyond the loans to support value addition to our exports, there is an urgent need to improve the export infrastructure at our ports.

“There is the need to create more digital platforms to reduce the human interface for exports and formulate the right policies.

“To this end, we urge the government to accelerate the plan to build domestic export warehouses by the Nigerian Export Promotion Council (NEPC).

“The concern of the Chamber is that without infrastructure, the grants may end up as lost ventures.

“There should be deeper stakeholder consultation and collaboration with the organised private sector in the implementation of this programme.”