The Central Bank of Nigeria (CBN)’s non-oil exports repatriation rebate scheme appears to be yielding fruits as investigations reveal that inflows into the Investors and Exporters (I&E) window improved in the month of March.
According to data obtained from the FMDQ’s website, total inflows into the I&E window rose by 59.2 percent month-on-month (m/m) to $1.49 billion in March as against $937.60 million recorded in February.
The data further revealed that local inflows increased by 46.9 per cent m/m to $1.20 billion and this was primarily due to higher inflows from the CBN (+240.3 per cent m/m), exporters (+7.2 per cent m/m) and non-bank corporates (+50.9 per cent m/m) in the review period.
On the other hand, while foreign inflows rose to $291.90 million, they remain significantly below pre-pandemic levels (2019FY monthly average: $1.56 billion). According to economic analysts, this is due to the current FX liquidity constraints, an overvalued currency and absence of significant macro reforms.
Commenting on the report, analysts at Cordros Research said, they expect FX liquidity conditions to remain frail in the absence of reforms to attract US dollar inflows into the economy over the short to medium term.
“The low FX liquidity conditions will also be driven by lingering global uncertainties and higher global interest rates, limiting foreign inflows to the economy. Thus, foreign investors will need some convincing actions as regards flexibility and clarity in the FX framework going forward,” they said.
In its effort to increase the country’s foreign reserves, the Central Bank had launched a rebate scheme that targets to increase the nation’s reserves by $200 billion in FX earnings from non-oil proceeds over the next five years.
Under the new rebate scheme, the CBN also said it has committed to providing some financial incentives to Nigerian exporters of semi-finished and finished goods (manufactured in Nigeria), who sell their export proceeds at the I&EW; or exporters of goods and services (information technology & creative businesses) that are permissible under the export prohibition list.
The apex bank had at a recent bankers retreat revealed that progress has been made in generating non-oil export revenues in 2022 via the RT200 programme with its Governor, Godwin Emefiele, saying export proceeds repatriation earned as rebates stood at $62 million in Q1, $622 million in Q2, $850 million in Q3 all in 2022.
“We ran into almost $1 billion during Q3 2022. We are seeing the repatriations that have resulted in almost $2 billion coming in this year (2022),” Emefiele said.
Emefiele stated that every Deposit Money Banks (DMBs) must grant at least a minimum of N500 billion in loans to export oriented companies.
“We are saying that we draw the line and that every year, the banks, the banks have committed that they will grant export facilities to the tune of at least N500 billion which the CBN will graduate amongst most banks. The large banks will take a larger share of it while the smaller banks will take the smaller share.
“So what we are saying is that this is intended to further stimulate export financing and also encourage export of goods out of the country so we can generate export proceeds in an exponential way that would eventually be high,” he explained.
NIMASA DG calls for contributory pension for dockworkers
…As agency hosts maiden ‘day of the dockworker’ event
By Seun Ibiyemi
It was a milestone event for the local maritime industry as the Nigerian Maritime Administration and Safety Agency (NIMASA) hosted the maiden edition of the ‘Day of the Dockworker’ in Lagos recently.
With the theme of the event being “Healthy Dockworker, Better Productivity,” it was an opportunity for stakeholders gathered to not just appreciate the efforts of Nigerian dockworkers at the center of the nation’s import-dependent economy, but also to focus on ways of improving their health and general well-being.
Delivering his welcome address at the event, the NIMASA Director General, Dr. Bashir Jamoh OFR, charged employers of labor to ensure all dockworkers are enrolled on contributory pension schemes, while also emphasising the need for operators of Oil and Gas Terminals to allow only approved stevedores aboard their installations, to ensure compliance with relevant international guidelines and conventions.
According to Dr. Jamoh, “As we celebrate today, it is important to put in perspective the plight of dockworkers who spend the greater part of their working life at the ports, with little or nothing to show for it. As employers of labour, you must endeavour to put in place a Contributory Pension Scheme for dockworkers and ensure prompt remittances of both Employers and Employees contributions at the end of each month.”
Speaking on compliance with stevedore inspections, he stated, “This occasion presents me with an opportunity to express the need for operators in the private jetties and Oil & Gas Terminals to grant operational access to the Stevedoring Contractors appointed by the Honorable Minister of Transport, to carry out stevedoring activities in assigned operational areas.”
On his part, the President General of the Maritime Workers Union of Nigeria (MWUN), Comrade Adewale Adeyanju, in his address, thanked the NIMASA Management for organising the event to celebrate Nigerian dockworkers in recognition of the important role played by them.
In attendance at the event were representatives from the Federal Ministry of Labour and Productivity; Nigerian Ports Authority; Seaport Terminal Operators Association and the National Association of Stevedoring Operators (NASA).
Internationally, July 7th is marked as ‘The Global Day of Action’ and is organized by the International Dockworkers’ Council (IDC) and International Transport Workers’ Federation (ITF). It aims to raise awareness of port working conditions and emphasize the importance of collective bargaining rights.
LCCI tasks govt on transparent FX regime, multinationals’ engagement
The Lagos Chamber of Commerce and Industry (LCCI) has implored the government to create a more flexible and transparent foreign exchange policy to address scarcity issues.
Its Director-General, Dr Chinyere Almona, gave the advice on Thursday in Lagos, in reaction to the recent announcement of Procter & Gamble to transition its Nigerian operations to an import-only model.
Recall that the Chief Financial Officer of Procter & Gamble, Andre Schulten, had said this move would effectively dissolve its on-ground presence in the country.
Almona noted that over the last few months, there had been a consistent increase in exit plans or a reduction in involvement in the Nigerian market by multinationals, saying the trend was worrisome.
She stated that the country’s lingering foreign exchange scarcity, poor power supply, port congestion, multiple taxation, insecurity, and poor infrastructure, among others, had taken a toll on many businesses in the country.
She recommended that the government should implement measures to stabilise and ensure the availability of foreign exchange for businesses, particularly those operating in dollar-denominated environments.
“Further, the chamber urges the government to engage multinational corporations and the business community to understand their challenges and gather input and feedback on policy decisions to collaboratively develop solutions that would forestall the exodus of businesses from Nigeria.
”The Central Bank of Nigeria (CBN) should prioritise the stability of the country’s currency and adopt the right policy mix to ensure price stability,” she said.
Tinubu appoints Omatsola Ogbe as new ES of NCDMB
President Bola Tinubu has approved the appointment of Engr. Felix Omatsola Ogbe as Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB).
The President in a statement by his Special Adviser on Media and Publicity, Ajuri Ngelale appointed new board members for the NCDMB.
According to the Spokesperson to the President, the President in conformity with Sections 71(1), 72, and 73 of the Nigerian Oil and Gas Industry Content Development Act (2010) approved the appointment of qualified Nigerians to serve on the Governing Council and Management team of the Nigerian Content Development and Monitoring Board (NCDMB).
The newly appointed board members include:Sen. Heineken Lokpobiri — Chairman / HMS, Petroleum Resources, Engr. Felix Omatsola Ogbe — Executive Secretary, Oritsemyiwa Eyesan — Member / EVP Upstream, NNPC Ltd, Gbenga Komolafe — Member / CEO, NUPRC, Bekearedebo Augusta Warrens — Member, Nicolas Odinuwe — Member, Rapheal Samuel — Member, Sadiq Abubakar — Member, Olorundare Sunday Thomas — Member.
Ajuri noted that the President expects the new appointees to discharge their duties with his patriotic resolve to significantly enhance indigenous industry participation in the energy sector as part of the Renewed Hope Agenda’s mandate to achieve the goal of 70 percent indigenous content and participation in the nation’s energy industry during the lifespan of this administration.
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