CBN releases operating guidelines for R200 policy

The Central Bank of Nigeria (CBN) has published guidelines for the implementation of its R200 policy.

The Nigerian News Agency recalls that the major bank recently initiated the R200 policy in an effort to reduce exposure to volatile sources of foreign exchange and gain more stable and sustainable inflows.

The policy aims to raise $200 billion in foreign exchange (FX) earnings from non-oil revenues over the next five years.

Ozoemena Nnaji, Director of CBN’s Trade and Exchange Department, in a circular on Monday, said that an important anchor of the program was the Non-Oil Export Revenue Repatriation Reimbursement Scheme.

Nnaji said the rebate scheme was designed to incentivize exporters in the non-oil export sector to encourage the repatriation and sale of export earnings on the foreign exchange market.

He said that only exporters of finished and semi-finished products were eligible for the incentive.

“It arises from the need to develop new strategies aimed at obtaining more stable and sustainable foreign exchange inflows, to insulate the Nigerian economy from crises and foreign exchange shortages.

“Exporters will qualify for discounts only when repatriated export proceeds are sold at the Investors and Exporters Window (I&E).

“Eligible transactions that qualify for incentives under the Scheme will be Export of finished and semi-finished products wholly or partially processed or manufactured in Nigeria,” it said.

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

He said that the guidelines would be subject to revision from time to time as deemed necessary.