News summary:
- The Central Bank of Nigeria (CBN) has extended its rebate scheme to raw export proceeds.
- The move is aimed at boosting non-oil exports and diversifying the Nigerian economy.
- Exporters who sell their proceeds on the Investors & Exporters’ Window (I&E) will be eligible for a rebate.
The Central Bank of Nigeria (CBN) has extended its rebate scheme to raw export proceeds, in a move aimed at boosting non-oil exports.
In a circular to all authorized dealers, the CBN said that exporters of products in their raw form will now be eligible for a rebate of N25 for every USD$1 repatriated and sold on the Investors & Exporters’ Window (I&E) for third party use.
Exporters who sell their proceeds on the I&E window for their own use will be eligible for a rebate of N15 for every USD$1.
The CBN said that the new policy is in line with its efforts to boost non-oil exports and diversify the Nigerian economy.
The CBN Governor, Godwin Emefiele, said that the RT200 programme has made good progress in export proceed repatriation since its establishment in February 2022.
“Available data shows that repatriation due to the programme increased by 40 per cent from US$3.0 billion in 2021 to US$5.6 billion at the end of 2022. The momentum for 2023 is equally showing strong numbers and impressive prospects,” he said.
The CBN boss added that in Q1 of 2023, a total of US$1.7 billion was repatriated to the economy, while about $790 million was sold at the Investors’ & Exporters window year-to-date. The balance of the proceeds remained in the Export Domiciliary Accounts of exporters.
He said that proceeds not sold at the I&E window cannot and will not be eligible for the rebate adding that names of exporters who receive the rebate will be published going forward.
“So, we encourage holding their export proceeds in their domiciliary accounts to take advantage of the rebate by selling the at the I&E Window. We are committed to strengthening and expanding foreign exchange supply into the market,” he said.
“Naturally, you all are important in this clarion call of expanding the supply of foreign exchange inflow into the economy. For exporters, flying the flag of Nigeria in the international market, the Bankers’ Committee and the CBN stand ready to partner with you to achieve your goals. You can benefit from the many financial programmes introduced by the CBN through your bank and as such grow your business exponentially,” he said.
The CBN’s move is expected to boost non-oil exports and help to diversify the Nigerian economy.