CBN Expands Non-oil Export Rebate to Increase Greenback Inflows

The Central Financial institution of Nigeria (CBN) says it has expanded its non-oil export rebate scheme by opening it as much as extra sectors in a bid to spice up greenback inflows amid slumping oil manufacturing.

Within the expanded scheme, CBN can pay naira incentives to exporters of major items or uncooked supplies that repatriate {dollars} to encourage them to export extra.

CBN famous in an announcement yesterday that the brand new scheme which takes impact retroactively from April 1, 2023, is an modification to its preliminary scheme launched final yr that utilized solely to exporters of completed and semi-finished items.

Below the scheme, exporters of uncooked supplies will get N25 per greenback of repatriated export earnings in comparison with N65 per greenback paid to exporters of processed objects.

Recall that the CBN Governor, Godwin Emefiele, whereas not too long ago reviewing the influence of the implementation of the export rebate regime underneath its ‘Race to $200 billion (RT 200)’ programme, famous that the scheme has made good progress in export proceeds repatriation since its institution in February 2022, with out there information displaying that repatriation as a result of programme elevated by 40 % from $3.0 billion in 2021 to $5.6 billion on the finish of 2022.

In 2022 CBN mobilsed industrial banks to offer incentives to exporters to repatriate their earnings to assist the nation reverse declining greenback inflows attributable to low oil manufacturing and fleeing international buyers avoiding the nation’s restrictions round greenback outflows and a number of change charges.