FILE PHOTO: Central Bank of Nigeria's logo is seen on the headquarters building in Abuja, Nigeria January 22, 2018. REUTERS/Afolabi Sotunde/File Photo - RC1E81C7FA80
Forex : CBN issues guidelines for RT200 Scheme
The Central Bank of Nigeria (CBN) has issued guidelines for the RT200 scheme, which entails the apex bank paying N65 for every US$1 repatriated and sold at the Investors and Exporters (I$E) Window.
This was disclosed in a recently released circular titled, “OPERATING GUIDELINES FOR RT200 NON-OIL EXPORT PROCEEDS REPATRIATION REBATE SCHEME”
The CBN introduced the RT200 Programme as a means to reduce exposure to volatile sources of foreign exchange and to earn more stable and sustainable inflows of FX.
CBN’s objective with the RT200 Programme is to raise $200 billion in Foreign Exchange (FX) earnings from non-oil proceeds over the next 3-5years.
Hence the CBN rebate scheme, which gives Naira4Dollar is designed to incentivize exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the FX Market.
Also, only exporters that repatriated export proceeds and sell it at the Investors & Exporters Window will qualify for the scheme.
The exporter must successfully have completed the e-Form NXP, Registration with Corporate Affairs Commission (CAC) and Nigeria Export Promotion Council (NEPC) to be eligible for the rebate.
CBN stated that the scheme shall pay “N65 for every US$1 repatriated and sold at the I&E Window to Authorised Dealer Banks (ADBs) for other thirty 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.”
Furthermore, the apex bank stated that the 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 CBN warned banks that “any attempt to circumvent the intent of the Scheme shall result in the suspension of the FOREX dealership licence of the ADB for 24months.”
Also the apex bank stated that exporter that presents fraudulent document(s) or tries to undermine the Scheme shall be banned from accessing the incentive for 24 months and all accounts shall be placed on PN for the same period.
