₦airaland Forum

The Nigeria Export Promotion Council, NEPC, has confirmed that the Central Bank of Nigeria, CBN, has approved CFA Franc to be captured on Nigeria Export Proceeds, NXP, forms for the repatriation of export proceeds.

Mrs. Nonye Ayeni, Executive Director of the NEPC, disclosed this while addressing newsmen on the Non-Oil Export Performance for the year 2024 in Abuja on Friday.

Ayeni said that the council had earlier engaged the CBN on the inclusion of the CFA Franc to boost trading.

She said that the currency was one of the currencies to be received as export proceeds by the bankers.

“I am delighted to inform you that the CBN has magnanimously approved CFA to be captured on NXP forms for the repatriation of export proceeds.

“We will be working with CBN and the banks to ensure full implementation. “I must say that this is a remarkable breakthrough for the council and further reaffirms the impact of the council’s current flagship programme,” she said.

[b]She also highlighted other efforts by the agency to facilitate exports, including certification of 400 small and medium-sized enterprise (SME) exporters.[b]

NikoWinaman:
I hope it will bring down the current exchange rate which have caused a lot of businesses to fail within these countries. It's been terrible

femisplash:
In simple terms, this new policy allows Nigerian exporters, particularly those trading with Francophone West African countries, to receive payments in CFA francs. This will help reduce the dependency on the US dollar for international transactions within the west African region.
The CBN’s decision comes amid persistent forex shortages in Nigeria, which have hampered the smooth repatriation of export earnings. Exporters can now bypass the hurdles associated with converting their earnings into dollars before accessing the naira. This is expected to enhance trade efficiency and boost Nigeria’s non-oil export revenues.

This also aligns with the African Continental Free Trade Area (AfCFTA) objectives and further boosts promoting intra-African trade.
Trust me, it is a game changer for Nigerian exporters, especially for SMEs who are often faced
with delays and losses due to forex bottlenecks,
This policy is particularly beneficial for exporters of agricultural products, solid minerals, and manufactured goods, who frequently engage in trade with neighboring countries like Benin, Togo, Niger, and Cameroon. These nations, which use the CFA franc, are key trading partners under ECOWAS framework.

The CBN will as a matter of importance, set an framework for the exchange rate mechanisms to mitigate exchange rate volatility and ensure transparency for both currencies.
According to COMTRADE, the trade export to Niger Republic, Togo, Cameroon, Benin was in volume of over half a billion dollars ( over $500 million dollars), it's quite significant.
This arrangement is similar to the $2 billion Nigeria-China swap deal, which will begin as soon as its frameworks are finalized.

BreconHills:
The reserves are not simply a savings account. It is also the place from which we pay out foreign obligations such as bond coupons, interest payments, mnc dividends etc. If these payments are not made then Nigeria credit rating will drop which will increase the cost of business.

So the drop to $39bn is nothing to worry about and it is not due to defence of the naira.

NothingDoMe:
Makes sense.

Make dem fast oh. Our reserves don drop go 39bn which i strongly believe is due to the defense of the Naira.

obataokenwa:
We dey wait to see the outcome of the romance with France of recent.

Imagine if BAT win second tenure and got nothing to win again fron Nigerians. He will so deal with people eh...kai that man sha.

I feel for Nigerians anyway cos they have president that's interested in building empire. We await to see how the son will be governor even though the guy looks good and refined sha. I have nothing against him cos he has a good record

BreconHills:
The reserves are not simply a savings account. It is also the place from which we pay out foreign obligations such as bond coupons, interest payments, mnc dividends etc. If these payments are not made then Nigeria credit rating will drop which will increase the cost of business.

So the drop to $39bn is nothing to worry about and it is not due to defence of the naira.

adioolayi:
CFA Franc to strengthen more against the Naira

obataokenwa:
We dey wait to see the outcome of the romance with France of recent.

Imagine if BAT win second tenure and got nothing to win again fron Nigerians. He will so deal with people eh...kai that man sha.

I feel for Nigerians anyway cos they have president that's interested in building empire. We await to see how the son will be governor even though the guy looks good and refined sha. I have nothing against him cos he has a good record

BafanaBafana:
French stooge as a president. What do you expect.

obataokenwa:
We dey wait to see the outcome of the romance with France of recent.

Imagine if BAT win second tenure and got nothing to win again fron Nigerians. He will so deal with people eh...kai that man sha.

I feel for Nigerians anyway cos they have president that's interested in building empire. We await to see how the son will be governor even though the guy looks good and refined sha. I have nothing against him cos he has a good record

BafanaBafana:
French stooge as a president. What do you expect.

chimex38:
U get it..

It strengthens their currency.
The CBN should advocate for reciprocal treatment:

They should accept our Naira as payment when we import their goods.
It gives us the twin fold advantage of strengthening our Naira and reducing our dependence on dollars.

majority of West and Central African countries use the CFA franc

Putindbutt:
See these zombidients, they have nothing but an empty box of head. Your little brain cannot understand the benefits of de-dollarizing the foreign exchange within the system. He's also China stooge for Naira-Yuan deal?, He's also Russian's stooge for joining BRICS?. very dumb people.

obataokenwa:
We dey wait to see the outcome of the romance with France of recent.

Imagine if BAT win second tenure and got nothing to win again fron Nigerians. He will so deal with people eh...kai that man sha.

I feel for Nigerians anyway cos they have president that's interested in building empire. We await to see how the son will be governor even though the guy looks good and refined sha. I have nothing against him cos he has a good record

Chimarto:
What about cedis?

adioolayi:
CFA Franc to strengthen more against the Naira