RT 200: CBN approves rebate for non-oil export proceeds

*The Central Bank of Nigeria has released a new policy implementation guideline for the payment of a graduated rebate amount designed to encourage exporters of primary products to enhance their capacity to engage in value-added exports

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has announced a fresh guideline for exporters repatriating export proceeds under a rebate scheme in the country.

ConsumerConnect learnt O. S. Nanji, Director of Trade and Exchange Department at CBN, in a circular to all authorised dealers Thursday, May 11, 2023, disclosed the Bankers’ Bank had directed that export of products in their raw form would be eligible for rebates.

The Bank 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.

The new policy implementation guideline already in effect also  noted 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 CBN said the new development is sequel to the circular dated February 25, 2022, referenced TED/FEM/FPC/GEN/01/002.

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 banking sector regulator directed that all authorised dealers are to ensure strict compliance in this regard.

In respect of the progress report at the summit, Mr. Godwin Emefiele, Governor of CBN, said the RT200 programme had made good progress in export proceeds repatriation since its establishment in February 2022.

Emefiele stated: “Available data shows that repatriation due to the programme increased by 40 percent 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.”

According to the CBN Chief, 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, report noted.

He further explained that proceeds not sold at the I&E window cannot and will not be eligible for the rebate.

The names of exporters who receive the rebate will be published going forward, the CBN Governor said.

Emefiele noted: “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 as well explained: “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.”

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