Post by Trade facilitator on Feb 22, 2022 12:34:40 GMT 1
Central Bank of Nigeria (CBN) Stops Foreign Exchange Rebate For Raw Produce Exporters, And Has Introduced The RT200 FX programme In The Country
The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said at the end of the Bankers’ Committee Meeting, that raw produce exporters will no longer be eligible for foreign exchange (forex) rebates.
The bank said that instead of offering rebates to portfolio investors, the bank announced that its intention is to provide loans to farmers who want to expand their plantations.
The CBN Governor said, “Granting forex rebate to exporters of raw produce has the capacity of creating inflation”. Emphasizing his position on the matter, the Governor stated that “because they see that there is going to be a rebate, everybody runs to the bush to buy cocoa at inflated prices, we don’t want that”.
The CBN further said that its doors remain open to operators in the agricultural downstream sector “to come and take loans and say you want to expand you your cocoa plantation; you want to expand your sesame seed plantation and other commodities.”
Exporters of raw agricultural produce he said “will get the loan, but that rebate we will not be able to look at that again”. He added, “For now, the CBN is interested in looking at how to make forex available for businesses into semi-processed, processed and wholly finished products.”
The Governor stated also that manufacturers seeking to import plant and machinery will have all the foreign exchange they need. “If you want to import your plant and machinery, we will give you all the foreign exchange you need to import the plant and machinery because we know that when we give you the foreign exchange to import the plant, it is probably going to be one-off and after that, we will now begin to generate the same Forex that we used in importing.
“We will generate exponential funding for that Forex to fund other people’s obligations”.
Entrepreneurs can now go to a bank and get a loan at 5% interest through any of the bank’s actions, according to the CBN Governor, Godwin Emefiele. “That will certainly reduce the cost of production and when I produce or process these products as it were, and I conduct export, and I sell my export proceeds into the market, I will get a Forex rebate, naira for dollar that will encourage me to do more”.
In a bid to drastically increase the inflow of forex into the country, the CBN has unveiled “RT200 FX programme” to attract $200 billion in FX repatriation.
The Central Bank of Nigeria, has officially announced the launch of the RT200 FX programme in a bid to get $200 billion in FX repatriation into the country.
This was disclosed by the CBN Governor at the Bankers’ Committee press briefing recently. The Rt200 FX programme will have the following five (5) key anchors:
Value-Adding Export Facility
Non-oil Commodities Expansion Facility
Non-Oil Forex Rebate Scheme
Dedicated Non-Oil Export Terminal
Bi-Annual Non-Oil Export Summit
This is what the Governor said in his speech: “After careful consideration of the available options and wide consultations with the banking community, the CBN is effective immediately announcing the Bankers’ Committee “RT200 FX programme” Repatriation.
The Governor stated that the new policy is directed at the non-oil sector. He said, “The RT200 FX programme is a set of policies, plans, and programmes for non-oil exports that will enable us attain our lofty yet attainable goal of US$200 billion in FX over the next 3-5 years”.
Under the programme, the CBN working with the Money Deposit Banks (MDBs), is to fund the construction of dedicated non-oil export terminals, to eliminate the delays currently experienced by exporters.
The CBN Governor listed four (4) major sources of FX into the country, and they are:
Proceeds from Oil exports
Proceeds from non-oil exports
Diaspora remittances
Foreign/Portfolio investments.
The Central Bank of Nigeria (CBN) Governor, Godwin Emefiele, said at the end of the Bankers’ Committee Meeting, that raw produce exporters will no longer be eligible for foreign exchange (forex) rebates.
The bank said that instead of offering rebates to portfolio investors, the bank announced that its intention is to provide loans to farmers who want to expand their plantations.
The CBN Governor said, “Granting forex rebate to exporters of raw produce has the capacity of creating inflation”. Emphasizing his position on the matter, the Governor stated that “because they see that there is going to be a rebate, everybody runs to the bush to buy cocoa at inflated prices, we don’t want that”.
The CBN further said that its doors remain open to operators in the agricultural downstream sector “to come and take loans and say you want to expand you your cocoa plantation; you want to expand your sesame seed plantation and other commodities.”
Exporters of raw agricultural produce he said “will get the loan, but that rebate we will not be able to look at that again”. He added, “For now, the CBN is interested in looking at how to make forex available for businesses into semi-processed, processed and wholly finished products.”
The Governor stated also that manufacturers seeking to import plant and machinery will have all the foreign exchange they need. “If you want to import your plant and machinery, we will give you all the foreign exchange you need to import the plant and machinery because we know that when we give you the foreign exchange to import the plant, it is probably going to be one-off and after that, we will now begin to generate the same Forex that we used in importing.
“We will generate exponential funding for that Forex to fund other people’s obligations”.
Entrepreneurs can now go to a bank and get a loan at 5% interest through any of the bank’s actions, according to the CBN Governor, Godwin Emefiele. “That will certainly reduce the cost of production and when I produce or process these products as it were, and I conduct export, and I sell my export proceeds into the market, I will get a Forex rebate, naira for dollar that will encourage me to do more”.
In a bid to drastically increase the inflow of forex into the country, the CBN has unveiled “RT200 FX programme” to attract $200 billion in FX repatriation.
The Central Bank of Nigeria, has officially announced the launch of the RT200 FX programme in a bid to get $200 billion in FX repatriation into the country.
This was disclosed by the CBN Governor at the Bankers’ Committee press briefing recently. The Rt200 FX programme will have the following five (5) key anchors:
Value-Adding Export Facility
Non-oil Commodities Expansion Facility
Non-Oil Forex Rebate Scheme
Dedicated Non-Oil Export Terminal
Bi-Annual Non-Oil Export Summit
This is what the Governor said in his speech: “After careful consideration of the available options and wide consultations with the banking community, the CBN is effective immediately announcing the Bankers’ Committee “RT200 FX programme” Repatriation.
The Governor stated that the new policy is directed at the non-oil sector. He said, “The RT200 FX programme is a set of policies, plans, and programmes for non-oil exports that will enable us attain our lofty yet attainable goal of US$200 billion in FX over the next 3-5 years”.
Under the programme, the CBN working with the Money Deposit Banks (MDBs), is to fund the construction of dedicated non-oil export terminals, to eliminate the delays currently experienced by exporters.
The CBN Governor listed four (4) major sources of FX into the country, and they are:
Proceeds from Oil exports
Proceeds from non-oil exports
Diaspora remittances
Foreign/Portfolio investments.
