The Central Bank of Nigeria has introduced a N65 incentive for every $1 repatriated and sold at the investors’ and exporters’ window to dealer banks or for third party use and N35 for $1 repatriated and sold for own use on eligible transactions.
The incentive sweetener is included in the bank’s Race to $200 billion in FX Repatriation operational guideline issued at the weekend by the director of the department of trade and exchange and published on its website.
This incentive, initiated by the apex bank, is in line with the mandate to loftily repatriate FX into the economy as well as encourage Nigerian exporters in the non-oil export sector to embrace repatriation and sale of export proceeds into the foreign exchange market. The bank said the idea 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.
As reported by Business A.M. earlier in February, Godwin Emefiele, who is also the governor of the Central Bank of Nigeria (CBN) and head of the bankers’ committee, announced the launch of RT200 FX Programme”, which stands for the “Race to $200 billion in FX Repatriation”. The CBN boss said the scheme is a set of policies, plans and programmes for non-oil exports that will enable Nigeria to attain its lofty yet attainable goal of $200 billion in FX repatriation, exclusively from non-oil exports, over the next 3-5 years.
“After careful consideration of the available options and wide consultation with the Banking Community, the CBN is, effective immediately, announcing the Bankers’ Committee “RT200 FX Programme”, which stands for the “Race to $200 billion in FX Repatriation”. The RT200 FX Programme is a set of policies, plans and programmes for non-oil exports that will enable us to attain our lofty yet attainable goal of $200 billion in FX repatriation, exclusively from non-oil exports, over the next 3-5 years,” the CBN governor said.
He further stated that the scheme will take effect immediately as stakeholders and exporters will converge for a meeting on the way forward in April. He also said the apex bank will provide concessionary and long-term loans with a 10-year tenure and 2-year moratorium for businesses interested in expanding existing plants or building new ones for the sole purpose of adding significant value to the non-oil commodities before exporting them.
However, eligibility for the incentive is tailored solely to exporters of finished and semi-finished goods, and they shall qualify for the rebates only where repatriated export proceeds are sold at the I&E window.
Emefiele also said it covers the export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria, goods and services within the I.T and creative businesses that are permissible and excluded under the existing export prohibition list. These will be made eligible for a transaction when the completion of e-Form NXP is completed and the firm is duly registered with the Corporate Affairs Commission and the Nigeria Export Promotion Council (NEPC).
However, the bank charged the authorised dealer banks on the need to show full understanding about both the real and perceived objective of the scheme, while noting that any attempts to circumvent the intent of the scheme shall result in the suspension of the FOREX dealership licence of the bank for 24 months.
