CBN to pay N65 bonus for every $1 of repatriated non-oil export proceeds sold at official FX rate

The Central Bank of Nigeria (CBN) says exporters will now enjoy a rebate of N65 for every dollar of non-oil export proceeds sold to third parties at the importers and exporters (I&E) window.

The apex bank said this in a circular released on Friday 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 aimed at attracting $200 billion in foreign exchange earning from non-oil exports proceeds over the next three to five years.

The I&E FX window 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.

Currently, naira trades at N416.52 at the I&E window (NAFEX) — which the CBN had adopted as the country’s official rate.

The CBN said the rebate scheme was specifically designed to incentivise exporters in the non-oil export sector to encourage repatriation and sale of export proceeds into the FX market.

“The scheme shall pay N65 for every US$1 repatriated and sold at the I & E Window to Authorised Dealers and Banks (ADBs) for other thirty party use,” the circular reads.

“And 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.

“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 apex bank said only exporters of finished and semi-finished goods are eligible for the incentive.

“Exporters shall qualify for the rebates only, where repatriated export proceeds are sold at the Investors & Exporters Window (I&E),” the circular adds.

“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.”

To ensure the success of the scheme, the CBN said:” Banks are therefore expected 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 24months.”

The apex bank warned that 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.