Heritage Bank Plc, Lagos Commodities and Futures Exchange (LCFE) and other participating financial institutions explored opportunities on export revenue from the commodities ecosystem as part of its supports to the Central Bank of Nigeria’s (CBN) to raise $200 billion in foreign exchange repatriation from the non-oil exports over the next three to five years.
This was brought to the fore at a breakfast meeting organised by LCFE with bankers, tagged, “The CBN RT200 FX Programme: And Potential of Export Revenue from the Commodities Ecosystem,” which had in attendance representatives from Heritage Bank, FSDH, Agvest Limited, Novo Merchant Bank amongst others.
Speaking on the opportunities for financial institutions in the CBN RT200 FX Programme, Divisional Head, Agribusiness, Natural Resources & Project Development, Heritage Bank, Olugbenga Awe, stated that the promotion of investment in commodities ecosystem by financial institutions in partnership with LCFE in its various assets traded in Agric commodities, energy and solid minerals would increase liquidity support from local commodity exportation to boost the race for the $200billion in FX repatriation and reduce the pressure on exchange rate.
He identified challenges expediently needed to be addressed which may likely hinder financial institution’s efforts on supporting the commodities ecosystem to drive the CBN’s RT200 FX target, such as inadequate export finance resources, lack of dependable source of local product prices, risk of haulage to bad roads amongst others.
MD of LCFE, Akin Akeredolu-Ale, who commended Heritage Bank for its sterling efforts in deepening its footprints in agrobusiness, called on banks and other organisations to take advantage of the catalytic and transformational approach to support CBN RT200 FX initiative.