CBN to pay N25/$ rebate to exporters of unprocessed items

The Central Bank of Nigeria (CBN) says exporters of raw and unprocessed items will be paid a rebate of N25 for every dollar of non-oil export proceeds sold to third parties at the importers and exporters (I&E) window.

The apex bank announced the development in a circular dated May 10, 2023 and signed by O.S. Nnaji, director of trade & exchange department.

The rebate is part of the benefits under the non-oil export proceeds repatriation rebate scheme — a major anchor of the CBN’s RT200 FX programme which is aimed at attracting $200 billion in foreign exchange earning from non-oil exports proceeds over the next three to five years.

Last week, the apex bank announced that exporters of unprocessed items would enjoy a rebate.

Since last year, a rebate of N65 for every $1 of repatriated non-oil export proceeds has been paid to exporters of semi-finished and finished goods.

Nnaji said the payment of the graduated rebate amount is expected to encourage exporters of primary products to enhance their capacity and eventually engage in value-added exports.

He said the rebate scheme became effective on April 1, 2023.

The circular reads in part: “Further to the circular dated February 25, 2022 referenced TED/FEM/FPC/GEN/01/002 on the above subject and the outcome of deliberations at the just concluded third edition of the RT200 Non-0il Export bi-annual Summit, the Central Bank of Nigeria wishes to state as follows:

1. Export of products in their raw form shall be eligible for rebate.
2. A rebate amount of N25 for every USD$1 repatriated and sold on the Investors’ & Exporters’ Window (1&E) for third party use shall apply.
3. While N15 for every USD$1 repatriated and sold on the Investors’ & Exporters’ Window (1&E) for own use shall apply.
4. The effective date for implementation will be April 01, 2023.”

Nnaji further directed that all authorised dealers are to ensure strict compliance to the rebate scheme.