Nume Ekeghe
The Managing Director, FSDH Merchant Bank, Ms. Bukola Smith has called on the federal government channel the same effort at boosting non-oil export towards attracting foreign direct investors (FDIs) and foreign portfolio investors (FPIs) so as to improve foreign exchange (FX) inflows and management.
Smith noted that the RT 200 FX policy recently introduced by the Central Bank of Nigeria (CBN) will enable Nigeria earn more stable and sustainable FX inflows, reduce exposure to volatile FX sources, increase local exports of goods.
She said this over the weekend event organized by FSDH Merchant Bank where the bank brought in trade experts to discuss, “CBN RT 200 Policy: Implications for Export Trade.”
She said: “A lot still needs to be done not only in the export space but also in the foreign direct investments and also in the foreign portfolio managers. So again, we need to see more policies from the central bank and our government as a whole that give our foreign investors a lot more confidence that it will not be policy flip-flops. A very practical example is that we are suffering from unfavorable and fluctuating terms of trade and exports.”
“I believe very strongly that RT200 is executed well, this scheme will help us to earn more stable and sustainable FX inflows, reduce exposure to volatile FX sources, increase local exports of goods and services which we need to achieve, and also to diversify the sources of FX inflows through non-oil exports so that our reliance on exports inflows begins to reduce.”
“No doubt, if properly implemented, the benefits of the schemes are innumerable, the big question is how to make this work. A major challenge in Nigeria’s export chain is the unstructured procedures that cause delays, corruption, which is a big elephant in the room, and the rejection of our exports as a result of the quality of exports that we send abroad. And all of this we need to address and address urgently.”
She also added that the RT 200 FX program requires critical export infrastructure, international trade diplomacy, and adequate funding for it to succeed.
