CBN pegs dollar sales spread at 10kobo on I&E window

The Central Bank of Nigeria (CBN) has pegged the spread or the difference between foreign exchange bid and asking rate at 10kobo on the Investors and Exporters (I&E) window.

This followed the N65 incentive for every $1 repatriated and sold at the I&E window to Authorised Dealer Banks (ADBs) for other third party uses, and N35 for every $1 repatriated and sold into the I&E window for own use on eligible transactions, as stipulated by the CBN in its latest foreign exchange policy.

In an effort to reduce exposure to volatile sources of foreign exchange and to earn more stable and sustainable inflows of foreign exchange (FX), the CBN introduced the RT200 programme.

The CBN on February 25, 2022 issued the guidelines for the implementation of the RT200 non-oil export rebate scheme. This was stated in a circular to all authorised dealers and the general public and signed by Ozoemena Nnaji, director, trade and exchange department of the CBN.

The RT200 Foreign Exchange (FX) programme, which was announced by Godwin Emefiele, governor of the CBN, after the bankers’ committee meeting in Abuja, is targeted at raising USD200bn from non-oil exports over the next three to five years.

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It is anchored on a five-point agenda with a view to raising $200 billion in FX earnings in the next five years. A major anchor of the programme is the non-oil export proceeds repatriation rebate scheme.

The rebate scheme is designed to incentivise exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the FX market. It 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.

Eligible beneficiaries of the incentive are only exporters of finished and semi-finished goods. Other exporters shall qualify for the rebate only, where repatriated export proceeds are sold at the I&E window.

Eligible transactions that qualify for incentive under the scheme include exporters of finished and semi-finished goods, wholly or partly processed or manufactured in Nigeria, except otherwise stated by the CBN.

Export of goods and services (IT and creative businesses) that are permissible and excluded under the existing export prohibition list, are also eligible.

The guidelines say 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.

Each request for incentive is to be accompanied by the following documents: written request from the exporter, completed application form (to be designed by the CBN and forwarded to exporters through their ADB), documentation requirements for exports as stipulated in the FX manual, evidence of repatriation and sale of export proceeds at the I&E window, and any other documents that may be required by the CBN.