CBN Issues Operating Guidelines for RT200 FX Scheme

February 27, (THEWILL) – The Central Bank of Nigeria (CBN) has published guidelines for the implementation of the RT200 FX Programme introduced on February 10 to enhance repatriation of non-oil export proceeds and boost market liquidity.

In a circular entitled ‘Operating Guidelines for RT200 Non-oil Export Proceeds Repatriation Rebate Scheme’ dated February 25, 2022 and signed by Dr. O.S. Nnaji, Director, Trade & Exchange Department, the bank stressed that the scheme was created towards the goal of attaining US$200 billion in forex repatriation, exclusively from non-oil exports within five years.

It explained that the rebate scheme is designed to incentivize exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the foreign exchange market.

To qualify as beneficiary of the rebate, the apex bank said that only exporters of finished and semi-finished goods are eligible for the incentive. Exporters shall qualify for the rebates only where repatriated export proceeds are sold at the Investors’ & Exporters’ (I&E) Window.

Under eligible transactions, the circular said that export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria shall be recognized for the purpose, except otherwise stated by the CBN.

Furthermore, export of goods and services (I.T and Creative Businesses) that are permissible and excluded under existing export prohibition list shall also be reckoned as eligible for the specified rebate.

Other transaction eligibility criteria are Completion of e-Form NXP, Registration with Corporate Affairs Commission (CAC) and Nigeria Export Promotion Council (NEPC) and Sale of repatriated export proceeds at the I&E window.

“Notwithstanding when the export process was initiated, the exporter will quality for the rebate provided the exporter meets the criteria stipulated above”, the circular stated.

The guideline stated that the Scheme shall pay N65 for every US$1 repatriated and sold at the I&E window to ADBs for other third party use, and N35 for every US$1 repatriated and sold into I&E for own use on eligible transactions only.

“However, the spread should not be more than 10 kobo,” the circular said, adding that “Payment of the incentive shall be made on quarterly basis. The accounts of exporters that qualify for rebates shall be credited latest one week after the end of the quarter.”

The RT200 FX Programme which stands for ‘Race to the US$200 billion in forex repatriation’ between three and five years was created by the CBN and the Bankers Committee to boost liquidity in the foreign exchange market.

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Sam Diala, THEWILL

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Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.

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