According to information from the Central Bank of Nigeria's annual report, the CBN spent N155 billion in 2022 on the now-defunct RT200 and Naira-4-Dollar schemes in an effort to increase foreign currency inflows into the nation.
The CBN said that the costs were categorized as "rebate expenses," which the apex bank tied to RT 200 and Naira-4-Dollar, two policy initiatives launched by Godwin Emefiele under the direction of the central bank to draw in foreign exchange.
"Rebate expenses represent costs incurred by the CBN in connection with the RT200 and Naira-4-Dollar schemes that the Bank introduced to increase foreign currency inflow, diversify the sources of inflow, increase the level of non-oil exports, ensure stability and sustainability of inflows, and assist export-oriented businesses to expand their export operations and capacities," the article from CBN stated.
The bank reported that it spent N137 billion on the RT200 plan in 2022 and N4 billion on the Naira-4-Dollar scheme in 2021. When the currency rates were announced to be unified, these plans were abandoned.
"The RT200 scheme, which was expected to draw in about $40 billion annually, brought only $3 billion last year. Feyi Fawehinmi, a senior investment accountant, suggested that what may have happened if it had truly garnered the $40 billion it sought is even funnier.
In an effort to promote remittance inflows from Nigerians living abroad, the Naira-4-Dollar program was introduced in 2021. The CBN provided a reimbursement of N5 for each $1 beneficiaries received through authorized international money transfer operators (IMTOs) under this program. The plan aimed to increase the availability of foreign currency and ease pressure on the naira.
Despite the cancellation of the RT200 and Naira-4-Dollar schemes, Bloomberg reports that the naira has had the worst year of any African currency, falling more than 40% versus the dollar.
Interbank FX liquidity has not increased as much as expected since the USD/NGN adjustment at the Investors and Exporters window in June, in part because of the reintroduction of de-facto controls limiting local trades above 800 and lax monetary policy conditions, according to analysts at US bank JP Morgan in a note to clients.