Nigeria central bank targets $200bln from non-oil exports over 3-5 years

ABUJA- Nigeria's central bank is targeting $200 billion of inflow from non-oil exports over the next three to five years, Governor Godwin Emefiele said on Thursday, unveiling policies to boost dollar supplies into its fragile economy.

Africa's biggest economy has been battling dollar shortages that arose from previously low oil prices for oil, its main export, and coronavirus-related disruptions. It has put in place a multiple exchange rate system as the government seeks to avoid the embarrassment of a large naira devaluation.

Since then, the central bank has introduced policies to ration hard currency supply, thereby channelling demand to the black market.

"The export of primary products does not yield much in foreign exchange," Emefiele told reporters following a meeting with Nigerian bankers to discuss the economy and currency.

"I'm mindful that this goal ($200 billion inflow) may appear unattainable to some, but we can achieve it."

He said exports of raw commodities generated less foreign exchange when benchmarked with the amount of foreign exchange inflows from some European countries that export semi-finished products.

"It is only by boosting our earnings and production of our economy that we can preserve the stability of our currency in the long-term."

Emefiele said Nigeria could no longer continue to depend on oil earnings for foreign exchange where it cannot determine its price and quantity to fund the country's obligations.

The central bank will offer soft, 10-year loans to investors willing to produce goods for export from Nigeria, he said, adding that the bank will provide dollars for such ventures.

But he added that the era where lenders depended on the central bank for dollars to fund imports was coming to an end, and that banks should be able to generate export dollars to fund their import customers and maintain profitability.

(Reporting by Chijioke Ohuocha; Editing by Catherine Evans and Mark Heinrich) ((chijioke.ohuocha@thomsonreuters.com; +234 703 4180 621; Reuters Messaging: chijioke.ohuocha.thomsonreuters@reuters.net))