CBN releases operating guidelines for its R200 policy

The Central Bank of Nigeria (CBN), has released guidelines for the operationalisation of its R200 policy.

Our correspondent recalls that the apex bank recently initiated the R200 policy in an effort to reduce exposure to volatile sources of foreign exchange and to earn more stable and sustainable inflows.

The policy is aimed at raising 200 billion dollars in Foreign Exchange (FX) earnings from non-oil proceeds over the next five years.

Ozoemena Nnaji, Director of Trade and Exchange Department of the CBN, in a circular on Monday, said that a major anchor of the programme was the Non-Oil Export proceeds repatriation Rebate Scheme.

Nnaji said that the rebate scheme was designed to incentivise exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the FX Market.

She said that only exporters of finished and semi-finished goods were eligible for the incentive.

“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.

“Exporters shall qualify for the rebates only where repatriated export proceeds are sold at the Investors’ and Exporters’ (I&E) Window.

“Eligible transactions that qualify for incentives under the Scheme shall be Export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria,” she said.

The director listed registration with Corporate Affairs Commission (CAC) and Nigeria Export Promotion Council (NEPC), and sale of repatriated export proceeds at the I & E window as part of the guidelines.

She said that the guidelines would be subject to review from time to time as may be deemed necessary by the CBN.