The Central Bank of Nigeria (CBN) has promised to pay exporters a bonus of N65 for every dollar of non-oil export proceeds sold to third parties at the importers and exporters (I&E) window.
CBN said the rebate is part of the benefits under the non-oil export proceeds repatriation rebate scheme — a major anchor of its RT200 FX programme aimed at attracting $200 billion the sector over the next three to five years.
This was contained in a circular released and signed by the Director, Trade & Exchange Department, CBN, O.S. Nnaji, on Friday.
The circular, which was addressed to all authorised dealers and the general public, also promised to pay “N35 for every US$1 repatriated and sold into I&E for own use on eligible transactions only. However, the spread should not be more than 10 kobo.”
The I&E FX window where naira currently trades at N416.52, is the market trading segment for investors, exporters and end-users that allows for FX trades to be made at exchange rates determined based on prevailing market circumstances.
The CBN explained that the rebate scheme is designed to incentivise exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the FX market.
Titled: Operating Guidelines for RT200 Non-oil Export Proceeds Repatriation Rebate scheme, the CBN also promised some incentives exporters of finished and semi-finished goods.
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.
The circular reads in part:
“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.”
“Exporters shall qualify for the rebates only, where repatriated export proceeds are sold at the Investors & Exporters Window (I&E).
“Eligible transactions that qualify for incentives under the scheme shall be export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria, except otherwise stated by the CBN; and export of goods and services (IT and creative businesses) that are permissible and excluded under existing export prohibition list.”
Also, Authorised Dealer Banks (ADBs) are equally expected to ensure the smooth sail of the scheme. They are therefore “to show full understanding about both the real and perceived objectives of this Circular as any attempts to circumvent the intent of the Scheme shall result in the suspension of the FOREX dealership licence of the ADB for 24 months.”
CBN however warned against infractions, saying: “any exporter that presents fraudulent documents would be banned from accessing the incentive for 24 months and all accounts shall be placed on post-no-debit (PND) for the same period.”
