In an effort to boost foreign exchange inflow and address the escalating inflation in Nigeria, the Federal government is actively pursuing the repatriation of all proceeds from the export of oil and gas products.
During a gathering of stakeholders in the oil and gas sector in Abuja over the weekend, Dr. Doris Uzoka Anite, the Minister of Industry, Trade, and Investment, emphasized the significance of repatriating export proceeds to bring stability to the country’s foreign exchange pricing regime.
Anite clarified, “Export proceeds are, by law, to be remitted to the country of origin. We have three guiding legal statutes requiring that export proceeds be repatriated. My job is to promote trade, and oil and gas trading falls under my purview. I don’t regulate how operators produce their products, but I regulate how they trade. Export and Import is my job; maintaining the balance of payment to the country is my job. Balance of payment is so important; if we have export proceeds coming back, we will have dollars, and the economy of the country will grow.”
She further explained that repatriating proceeds from oil and gas exports would aid in managing exchange rate volatility. “The President declared a state of emergency on revenue, including foreign exchange revenue, so this is the time to support the economy and reverse the downward trend that we are heading,” she asserted.
Dr. Hassan Mahmud, the Director of Trade and Exchange at the Central Bank of Nigeria, underscored the critical role of the oil and gas sector in achieving the CBN’s mandate. Mahmud stressed the need for moderating the volatility of foreign exchange from the supply side, stating, “We can’t print dollars, but we can create an environment for dollars to come into the country.”
Oloyede Adekunle, the Nigerian Customs Controller on Import and Export, emphasized the importance of automating the process of obtaining export permits to reduce delays.
At the conclusion of the meeting, it was agreed that a technical committee should be established to draft the SLA (Service Level Agreement) and work on technical integration. The committee would also write to the CBN to include FMITI (Federal Ministry of Industry, Trade, and Investment) in the Export proceeds repatriation reconciliation committee and request associations to establish a self-regulatory mechanism. Additionally, the introduction of a fee on export permit approval would be expedited, and oil exporters would be informed about the extension of the deadline for compliance
READ ALSO FROM NIGERIAN TRIBUNE
