RT 200 FX Policy Programme

Race to $200 billion in FX Repatriation

Background

The program was introduced with the aim of ensuring that Nigeria achieves the goal of $200 billion in FX repatriation, exclusively from non-oil exports in the next 3-5 years. The CBN is looking to bring in more foreign exchange for this country. This is to ensure that CBN conducts its obligations to ensure that Nigeria’s scarce resources are preserved, and the value of the currency is stabilised. The initiative was unveiled by CBN Governor Godwin Emefiele.

The program comprises of 5 key components that could reach the goal of reaching $200 billion within the timeframe namely:

Value-Adding Exports Facility

This will provide grants and long-term funding for businesspeople who are interested in either expanding existing factories or building new ones for the sole purpose of adding significant value to the non-oil commodities. This value could be appreciated by realising that exporting unprocessed goods do not usually result to profit in foreign exchange.

Non-Oil Commodities Expansion Facility

These are facilities designed to boost local production of exportable commodities. This is to ensure that the new facilities and factories financed by the value-adding facilities are not starved of inputs of raw materials in their production cycle.

Non-Oil FX Rebate Scheme

This is a special local currency rebate for non-oil exporters of semi-finished and finished products who show evidence of export proceeds repatriation sold directly into the investors and exporter windows to boost liquidity in the market.

Non-Oil Export Terminal

This will reduce port congestion. A major issue highlighted by exporters that hinders improved operations and foreign exchange earnings. The new initiative from CBN urges State governments with existing ports to partner with bank to establish an export terminal and a friendly ecosystem of world class infrastructure needed for non-oil exports. Over the next 3-5 months, it is intended that banks will collect and analyse proposals from state governments willing to collaborate. Banks will provide a significant amount for financing whereas the responsibilities of state governments will be made clearer in time.

Biannual Non-Oil Export Summit

This is a more formal, predetermined, and regular proposed by the CBN to discuss opportunities and challenges in relation to the program. This will bring in all relevant stakeholders in the export business such as banks, customs etc. The Governor believes that the coming together of all relevant stakeholders and parties would be particularly important for the goal of $200 billion to be reached within the intended timeframe.

RT 200 FX Policy Programme

How Does It Work

The CBN will pay exporters ₦65 for every US1 repatriated and sold to approved Dealer Banks (ADBs) through the Investors & Exporters FX Window for third party use.

The CBN will pay ₦35 for every US$1 repatriated and sold into the I&E Window for “own” use on eligible transactions (the spread should not be more than 10 Kobo).

Get Started

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

RT 200 FX Policy Programme

How to be Eligible

Exporter of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria, except otherwise stated by the CBN.

01

Export of Goods and Services (I.T. & Creative Businesses) that are permissible and excluded under existing export prohibition list.

02

Completion of e-Form NXP

e-Form NXP

03

Registration with CAC and Nigeria Export Promotion Council (NEPC)

04

Sale of repatriated export proceeds at the I & E Window

05

Fidelity Bank/Export and Sell

Export Seminar

Earn in Dollars by Exporting to the USA

RT 200 FX Policy Programme

Application Requirement

A written request from the Exporter

Documentation requirement for exports

Evidence of repatriation and sale of export proceeds at the I&E window

Any other document as may be required by the CBN

How to Apply

Submission of requests will be made through the ADB where the e-Form NXP was established. It is the responsibility of the ADB to authenticate all documents submitted for rebates.

Approval Process

All processed applications shall be for consideration of the CBN, through the Office of the Director, Trade and Exchange Department.

RT 200 FX Policy Programme

Fidelity Bank Involvement and Opportunities to Customers

As part of effort to sensitize Fidelity customers nationwide, help customers to stay on top of events and their businesses, Fidelity bank organized nationwide workshops on the new policy and other emerging sector issues.

Workshop attendance include importers, exporters, state government officials and government agencies. The first wave of workshops was held Kano, Akure, Benin, and recently Lagos.

The Workshop objectives include:

Policy scoping and implications for businesses (importers and exporters).

Fundamentals of export business and steer to enhance readiness of businesses to engage in export businesses transactions.

Provide pointers and steer to help import-oriented businesses develop alternative dollar supply source via export trade.

Provide pointers and directions to help businesses enhance their competitiveness through export play e.g., driving improvements in processes, product design, packaging, and quality.

Reinforcement of the value addition imperative and steer on how to enhance internal capacities and competitiveness.

Beyond, the topical issue of FX earnings, these foundations and business improvements put Nigerian businesses in better stead to compete in the wake of AFCFTA.