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CBN issues guidelines for implementing R200 policy

*The Bankers’ Bank says the policy was formulated to develop new strategies to earn more stable and sustainable inflows of Forex, to insulate the Nigerian economy from shortages

Alexander Davis | ConsumerConnect

Designed to incentivise exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the foreign exchange (Forex) market, the Central Bank of Nigeria (CBN) has released guidelines for operationalisation of its recent R200 policy.

ConsumerConnect reports Ozoemena Nnaji, Director of Trade and Exchange Department of the CBN, who issued a circular Monday, February 28, 2022, in Abuja, FCT, said that a major anchor of the programme was the non-oil export proceeds repatriation rebate scheme.

The CBN stated that the policy is aimed at raising $200billion in Forex earnings from non-oil proceeds in the next five years.

Recall that the Bankers’ Bank recently initiated the R200 policy in an effort at reducing exposure to volatile sources of Forex, while  earning more stable and sustainable inflows.

Nnaji also stated that the rebate scheme was designed to incentivise exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the country’s Forex market.

The Bank’s Director of Trade and Exchange Department further said  that only exporters of finished and semi-finished goods would be eligible for the incentive.

Nnaji noted: “It is borne out of the need to develop new strategies aimed at earning more stable and sustainable inflows of FX, in order to insulate the Nigerian economy from shocks and FX shortages.

“Exporters shall qualify for the rebates only where repatriated export proceeds are sold at the Investors’ and Exporters’ (I&E) Window.”

She stated: “Eligible transactions that qualify for incentives under the Scheme shall be Export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria.”

According to Nnaji, registration with the Corporate Affairs Commission (CAC) and Nigerian Export Promotion Council (NEPC) and sale of repatriated export proceeds at the I & E window is part of the guidelines.

The guidelines will be subject to review from time to time as may be deemed necessary by the CBN, said she.

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