CBN Unveils Plans to Raise $200 Billion for Non Oil Exporters

The Central Bank of Nigeria has unveiled plans where exporters can benefit N65 for every dollar of Non Oil export proceed sold from its RT200 FX Programme which aims to raise $200 billion in Foreign Exchange (FX) earnings from Non-Oil Proceeds over the next 3-5years.

The Nigerian Central bank revealed that “N65 for every US$I repatriated and sold at the I & E Window to ADBs for other thirty party use, and (ii) N35for every US$I repatriated and sold into for own use on eligible transactions only. However, the spread should not be more than 10 Kobo

A major anchor of the program is the Non-Oil Export proceeds repatriation Rebate Scheme. It is anchored on a five-point agenda with a view to raising $200 billion in FX earnings in the next five years.

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According to the CBN, “The rebate scheme is designed to incentivize exporters in the Non-Oil export sector to encourage repatriation and sale of export proceeds into the FX Market. 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.”

The CBN listed 5 key Objectives of the Scheme which include
a) Enhance Foreign Exchange inflow.
b) Diversify the sources of FX inflow.
c) To increase the level of contribution of non-oil exports.
d) Ensure stability and sustainability of FX inflows.
e) Support export-oriented companies to expand their export operations and capabilities.

The CBN noted that “Payment of the incentive shall be made on a quarterly basis. The accounts of exporters that qualify for rebates shall be credited latest one week after the end of the quarter”

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To ensure the success of this Scheme, the CBN stated that “Banks are therefore expected to show full understanding about both the real and perceived objectives of this Circular as any attempts to circumvent the intent of the Scheme shall result in the suspension of the FOREX dealership licence of the ADB for 24months.”

On the eligibility for the rebate, CBN revealed that “Only exporters of finished and semi-finished goods are eligible for this incentive. Exporters shall qualify for the rebates only, where repatriated export proceeds are sold at the Investors’ & Exporters’ Window”

The CBN warns that “Any Exporter that presents fraudulent document(s) or tries to undermine this Scheme shall be banned from accessing the incentive for 24 months and all accounts shall be placed on PND for the same period.