Over the course of the RT200 Program, the Central Bank of Nigeria (CBN) has paid out N144 billion in rebates to exporters of semi-finished and finished goods.
The exporters received N25.04 billion in payments in the most recent quarter alone, which is an increase of approximately eight times year over year. The non-oil rebate program, a key component of the RT200, got off to a strong start in the first quarter of last year, with exporters earning N3.23 billion worth of incentives.
Exporters receive N65 for every dollar repatriated and sold via the Investors and Exporters (I&E) window for third-party usage. Through the official channel, foreign exchange (FX) that is repatriated for personal use is charged N35 per dollar.
The CBN Governor, Godwin Emefiele, referred to the initiative as a fantastic success story in the endeavor to improve the performance of the crucial sector during the RT200 Non-oil Summit, another phase of the program, held in Lagos yesterday.
Emefiele informed the audience that a total of $1.7 billion had been repatriated so far this year, with the I&E window accounting for 46.5% of the value, or $790 million. He claimed that the remaining amount is kept in the exporters’ domestic accounts.
“Please note that proceeds that are not sold at the I&E window cannot and will not be eligible for the rebate. So, we encourage holding their export proceeds in their domiciliary accounts to take advantage of the rebate by selling at the I&E Window,” Emefiele pleaded.
In the past, exporters received a premium when their export revenues were sold on the parallel market. The linkage’s effects on the nation’s FX management were bemoaned by the CBN.
At the summit, Emefiele pledged that the CBN would keep working with other important parties like the Nigerian Customs Service (NCS), the Nigerian Ports Authority (NPA), and the Nigerian Export Promotion Council (NEPC) to boost the volume of non-oil exports, which are the most reliable source of foreign exchange for any nation.
“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 banks and as such grow your business exponentially,” the CBN chief said.
Emefiele stated that the regulator began disclosing the names of the beneficiaries in January of this year in an effort to increase the scheme’s level of openness. He also made a commitment that the Bankers’ Committee would continue to collaborate with other stakeholders in order to find answers to the problems facing exporters.
With “countries all over the world turning to export earnings and proceeds repatriation as a veritable means of bolstering foreign reserves, maintaining a robust balance of payments position and a stable source of FX inflows”, he confirmed, Nigeria must explore all options to raise the contribution of oil-oil exports to the economy.
With the completion of the Dangote Refinery, whose promoter, Aliko Dangote, attended the summit to discuss difficulties with businesspeople and bankers, he was thrilled that Nigeria will soon move from being an importer of refined petroleum products to a net exporter.
Gov. Babajide Sanwo-Olu urged the nation to support a strong external sector in order to create a resilient economy. He was represented by Lagos State Commissioner for Economic Planning and Budget, Samuel Egube.
Achieving a successful public-private partnership (PPP), looking beyond RT200, and tackling important infrastructure concerns were also hot topics at the summit.
