The Central Bank of Nigeria (CBN), has released implementation guidelines for its newly created RT200 Non-oil Export Proceeds Repatriation Rebate Scheme, showing its exporters’ responsibilities and benefits.
According to the circular signed by the Director of Trade and Exchange Department, Dr. Ozoemena Nnaji, exporters of eligible non-oil commodities will receive N65 for every $1 repatriated and sold at the Investors’ and Exporters’ (I & E) Window through authorised dealer banks (ADBs) for third-party use.
The circular also mentioned that those who repatriate and sold through the window for self-use on eligible transactions will receive a rebate of N35 per dollar, the document stated.
RT200 scheme, is targeted at raising $200 billion from processed and semi-processed non-oil exports in the next three to five years.
According to Godwin Emefiele, Governor of the CBN, the new policy direction would ultimately lead to the self-sufficiency of the commercial banks in foreign exchange needs in the coming years.
Payment of the rebates would be done quarterly, latest one week after the end of that quarter.
The rebate would narrow the arbitrage between the official and parallel markets. The exchange rate of the parallel market is N575/$ while I & E Window closed at N416/$ last week. This differential is responsible for the low participation at the official window by exporters.
Applicants for the rebates are expected to file evidence of repatriation and other relevant documents. Such applications are expected to be made five days after the sale of the proceeds is consummated.
The roles of the regulatory bank, ADBs and exporters in the process is also contained in the guideline.
Possible sanctions in the event of infractions is also mentioned in the guideline.
According to the CBN only exporters of finished and semi-finished goods whose repatriated export proceeds are sold at I&E window would benefit from the rebate scheme.