By Omodel Adigun
the The Central Bank of Nigeria (CBN) says exporters will now receive a rebate of N65 for every dollar of non-oil export earnings sold to third parties at the Importers and Exporters (I&E) window.
The apex bank said so in a circular from OS Nnaji, director of the Trade & Exchange department.
The rebate is part of the benefits of the non-oil export earnings repatriation rebate program – a major anchor of the CBN’s RT200 FX program aimed at attracting $200 billion in foreign exchange (forex) from oil export earnings. non-oil exports over the next three to five years.
The I&E FX window is the market segment for investors, exporters and end users that allows forex trading at determined exchange rates based on market circumstances.
Currently, the naira is trading at 416.52 naira at the I&E counter (NAFEX) – which the CBN had adopted as the country’s official rate.
The CBN said the rebate program was specifically designed to incentivize exporters in the non-oil export sector to encourage the repatriation and sale of export earnings in the foreign exchange market.
“The program will pay N65 for every US dollar repatriated and sold at the I&E counter to authorized dealers and banks (ADB) for use by 30 other parties,” Nnaji said.
“And 35 naira for every US dollar repatriated and sold to I&E for its own use on qualifying transactions only. However, the spread should not exceed 10 kobo.
“Premium payment is made on a quarterly basis. The accounts of exporters eligible for rebates are credited no later than one week after the end of the quarter.
The apex bank says only exporters of finished and semi-finished products are eligible for the incentive.
“Exporters will only be eligible for rebates when repatriated export earnings are sold at the Investors and Exporters (I&E) window,” the circular adds.
“Eligible transactions eligible for incentives under the program are the export of finished and semi-finished products wholly or partly processed or manufactured in Nigeria, unless otherwise specified by the CBN; and the export of goods and services (IT and creative businesses) that are permitted and excluded under the existing export ban list. »
To ensure the success of the program, the CBN said, “Banks must therefore demonstrate a full understanding of the real and perceived objectives of this circular, as any attempt to circumvent the intent of the program will result in the suspension of the License of ADB FOREX dealer for 24 months.
The apex bank has warned that any exporter who presents fraudulent documents will be barred from the incentive for 24 months and all accounts will be placed on post-no-debit (PND) for the same period.