CBN’s Godwin Emefiele Tells GTBank, Zenith, Others To Source Non-oil Export Forex

The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has urged banks to source for foreign exchange (forex) through non-oil exports.

Emefiele said Nigerian banks, which consist of GTBank, Zenith Bank, Access Bank, Stanbic IBTC, Wema Bank, among others, should continue to ramp up their own sources of non-oil export that will generate forex through repatriation.

At a period Nigeria is struggling with forex scarcity, the apex bank boss said sourcing their own FX will enable the commercial banks to meet foreign exchange demands from account holders. 

Prime Business Africa recalls that Emefiele had previously threatened to stop providing forex to financial institutions, urging them to stop depending on the apex bank, and source for their international currencies.

However, while speaking to the press over the weekend after the outcome of the 13th annual Bankers Committee Retreat, held in Lagos, Emefiele disclosed that the financial regulator will continue to sell forex to banks. 

He revealed that the CBN will no longer halt sales of forex to the bank due to the progress of the ‘Road to $200 billion non-oil exports revenue programme (RT 200)’. 

‘RT 200’ is a CBN initiative that aims to raise $200 billion in forex earnings from non-oil proceeds in three to five years, and according to Emefiele, the programme has raised about $2 billion. 

Emefiele said, “We highlighted the tremendous progress that has been made because we recall that in the course of the year before we started the RT 200, the CBN had actually threatened the banks that they must begin to source their own FX to meet the needs of their customers and not entirely rely on central bank sources. 

“But seeing the progress that has been made so far, we’re talking about $62 million plus $622 million plus $850 million, we are talking of almost $2 billion so far. We think that with the good progress and on the basis of the progress that we have made so far, the CBN will continue to support the market with foreign exchange, albeit as hard as it may be. 

“We will continue to support the market while the banks themselves continue to ramp up their own sources of non-oil export that can earn FX through repatriation which they can use to fund the needs of their customers.”