The Central Bank of Nigeria (CBN) yesterday released a new guideline for exporters repatriating export proceeds under a rebate scheme.
In a circular to all authorized dealers signed by CBN Director, Trade and Exchange Department, O.S Nanji, the bank directed that the export of products in their raw form will now be eligible for rebate.
He said a rebate amount of N25 for every USD$1 repatriated and sold on the Investors & Exporters’ Window (1&E) for third party use shall apply, while N15 for every USD$1 repatriated and sold on the Investors’ & Exporters’ Window (I&E) for own use shall apply.
According to the policy implementation guideline which has already taken effect, the payment of the graduated rebate amount is expected to encourage exporters of primary products enhance their capacity and eventually engage in value added exports.
The circular titled: Operating Guidelines for RT200 Non-Oil Export Proceeds Repatriation Rebate Scheme is the outcome of deliberations at the just concluded third edition of the RT200 Non-oil Export bi-annual Summit.
The apex bank directed that all authorized dealers are to ensure strict compliance.
Giving progress report at the summit, CBN Governor, Godwin Emefiele, said the RT200 programme has made good progress in export proceed repatriation since its establishment in February 2022.
“Available data shows that repatriation due to the programme increased by 40 per cent from US$3.0 billion in 2021 to US$5.6 billion at the end of 2022. The momentum for 2023 is equally showing strong numbers and impressive prospects,” he said.
The CBN boss added that in Q1 of 2023, a total of US$1.7 billion was repatriated to the economy, while about $790 million was sold at the Investors’ & Exporters window year-to-date. The balance of the proceeds remained in the Export Domiciliary Accounts of exporters.
He said that proceeds not sold at the I&E window cannot and will not be eligible for the rebate adding that names of exporters who receive the rebate will be published going forward.
“So, we encourage holding their export proceeds in their domiciliary accounts to take advantage of the rebate by selling the at the I&E Window. We are committed to strengthening and expanding foreign exchange supply into the market,” he said.
“Naturally, you all are important in this clarion call of expanding the supply of foreign exchange inflow into the economy. For exporters, flying the flag of Nigeria in the international market, the Bankers’ Committee and the CBN stand ready to partner with you to achieve your goals. You can benefit from the many financial programmes introduced by the CBN through your bank and as such grow your business exponentially,” he said.
