The RT 200 scheme launched on February 10, 2022 to revolutionise non-oil export drive, stimulate domestic production and expand the frontier of diversification, has proved a success story one year after it was launched.
The RT 200 which stands for “Race to US$200 billion in Forex Repatriation” constitutes a blueprint that will enable Nigeria to attain the sky-high goal of US$200 billion repatriation, exclusively from non-oil exports over the next 3 to 5 years. The scheme was created on five anchors, namely Value-Adding Exports Facility, Non-Oil Commodities Expansion Facility, Non-Oil FX Rebate Scheme, Dedicated Non-Oil Export and Terminal, Biannual Non-Oil Export Summit. Each of these anchors constitute a distinct and related channel of implementation of the scheme for measurable outcome.
The programme includes a Non-Oil Exports Proceeds Repatriation Rebate Scheme, which incentivises exporters in the non-oil sector to repatriate and sell export proceeds in the official FX market. Under the scheme, CBN pays rebate of N65 for every dollar repatriated and sold in the Investors & Exporters (I&E) window to authorised dealer banks for third party use. The CBN also pays rebate of N35 for every dollar repatriated and sold into I&E for own use for eligible transactions only, provided the spread is not more than 10 kobo.
The apex bank also stipulated that payment of the incentives shall be quarterly with exporters that qualify credited within one week after the end of the quarter.
At the launch of the scheme last year, Governor, Central Bank of Nigeria (CBN), Godwin Emefiele, said “I am mindful that this goal itself may appear unattainable to some. But I am resolute and determined that we can achieve it. Many countries that are much less endowed than Nigeria are doing it. Consider for example that agriculture exports alone from the Netherlands was about US$120 billion last year. Yet, the Netherlands has a land mass of about 42,000 square kilometers, which is much smaller that the land mass of Niger State alone, at over 76,000 square kilometers.”
Speaking on the performance of the RT 200 programme in the first quarter, Q1 ’22, Managing Director/Chief Executive, Fidelity Bank Plc, Mrs. Nneka Onyeali-Ikpe, disclosed that 150 exporters repatriated $60 million as export proceeds and qualified for N3.5 billion rebate under the programme. She disclosed that the CBN Governor, Mr. Gowin Emefiele, had earlier ordered the release of the rebate to the exporters through their respective banks.
Onyeali-Ikpe spoke at a virtual press briefing at the end of the Bankers Committee meeting held yesterday on April 13, 2022;
The Fidelity Bank MD disclosed that there were 150 customers at various levels, some under the finished goods categories and some under the semi-finished goods categories. “The money was only released today for this quarter. It is going to be paid quarterly and N3.5 billion will be paid to the 150 customers that I mentioned earlier on.”
At the well-attended maiden non-oil summit held in Lagos on June 16, 2022 with the theme, ‘Setting the Roadmap Toward Achieving RT200 and Non-Oil Exports for Development’, Emefiele drew attention to the perennial forex challenge that had plagued the economy, which gave rise to the RT200 scheme, as a way out.
Recalling that the RT200 FX effectively kicked off within two months of its launch with the payment of a total of N3.5 billion in rebates to 150 exporters who had taken part in the scheme so far, the CBN governor stressed that the measure should convince stakeholders that the scheme was not set up to attract robust rhetoric but to be implemented for results.
Paper presentations were made by different experts on ‘Addressing the Logistic Constraints to Improve Non-Oil Export’; ‘Bridging the Finance Gaps, Effects of the CBN Initiatives to Boost Non-Oil Export’; ‘Non-Oil Export Performance in Nigeria: Challenges and Prospect”, and ‘Service Industries: Harnessing the Opportunities in Service for the Foreign Exchange Earnings’.
A major outcome of the event was the decision by the CBN, banks and the Nigerian Ports Authority to fix export bottlenecks at the Lagos Port in 90 days. The apex bank in collaboration with the Bankers’ Committee, the Nigeria Ports Authority (NPA) and other stakeholders in the non-oil exports agreed to find lasting solutions to export bottlenecks, especially in the ports areas, within 90 days. Emefiele said the Summit was a problem-solving outing to determine “what we have done, what we have achieved and why we failed to achieve what we set out to accomplish.”
At the second non-oil Summit held in November 2022, the CBN disclosed that it had paid out a total sum of N81 billion to Nigerian exporters in the year as rebates for repatriating their export proceeds in line with the RT 200 FX policy. It revealed that a total of $4.987 billion had also been repatriated into the country by non-oil exporters, higher than the $3.190 billion repatriated in 2021.
\The payments were made in fulfilment of the apex bank’s promise to reward Nigerian exporters who repatriated their export proceeds as spelt out in the ‘Operating Guidelines for RT 200 FX Export Proceeds Repatriation Rebate Scheme’ published in February 2022. It has been stressed that the rebate scheme was designed to incentivise exporters in the non-oil sector to encourage repatriation and sale of export proceeds into the FX market.
The payments of the rebates, no doubt, would clear the doubts that might have been harboured by some Nigerians about the ability of the CBN to execute the scheme as proposed.
“I know that when we proposed a rebate payment on every repatriated foreign exchange into the country used for Own expenses or sold at the I & E window, some may have doubted our resolve to meet and sustain the obligation.
“However, events in the last three quarters have shown that when CBN makes a commitment, it keeps that commitment to the last letter,” Emefiele stressed, adding, “In 2022, a total of $4.987 billion will have been repatriated into the country by non-oil exporters, higher than the $3.190 billion repatriated in 2021. Of this amount, only $1.966 billion qualified for the rebate program, but only $1.559 billion was sold at the I&E window or for own use.
The CBN had also paid out about N81 billion in rebates to hard-working Nigerian exporters as at that period. This is a testament to the resolve of the CBN to ensure quick acceleration of the export value chain in the country.
Other gains of the scheme include improvements of infrastructure and processes which have been a bottleneck to effective export business at the ports. In terms of processes and infrastructure for improving trade performance, the scheme has recorded some achievements in automation and digitization of the trade processes.
Specifically, transaction windows like the SONCAP, NAFDAC, and Marine insurance certificates have been automated and fully integrated with the Trade Monitoring System. Relevant stakeholders are working with the Quarantine Service to integrate their permits and certificates into the system, and very soon, the NPA eCall Up System will also be integrated.
Other enhancements have also been done with eNXP, including integration with SGD and the development of the PIA portal aimed at digitizing the process of issuing Clean Certificates of Inspection (CCIs) by PIAs and ease of scheduling of inspection by exporters.
Emefiele stated, “All these are made possible because of the interest shown and the commitment made by all of us gathered in this room and beyond,” elated Emefiele had revealed.
.“We are already getting feedback from Banks of interest by exporters in adding value to the products they export to allow them to benefit from the program.
“We are happy that this is happening, and we encourage more exporters to find ways to add value to their exports so that they can benefit not only from the scheme but get better value,”
The National Bureau of Statistics (NBS) reports show that there is exponential growth in Nigeria’s non-oil export since the introduction of the RT 200 in February 2022.
About the Author
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.
