CBN, NEXIM fast-track export financing processes
Stakeholders in the export segment of the nation’s economy may now receive accelerated processes to access the N500 billion Export Stimulation Facility (ESF) under the new guidelines released by the Central Bank of Nigeria (CBN).
Besides, CBN and the Nigerian Export-Import Bank have reviewed existing policies and strategies as a way of increasing funding support, stimulate investment in non-oil sector and reduce process period.
The Acting Managing Director and Chief Executive Officer, NEXIM, Bashir M. Wali, who made the disclosure at the non-oil export stakeholders’ engagement session, said that applications to access the ESF from participating banks, NEXIM to CBN now have stipulated timeframe.
Lamenting that packaging has been the bane of the country’s export projections, he said that the new drive is seeking to tackle it effectively.But the Director of Development Finance Department, CBN, Dr. M.A. Olaitan, said the facilities were scripted against the backdrop of dwindling oil revenue and the need to reposition the non-oil sector for enhanced foreign exchange earnings.
Also, he noted that it is a way to boost non-oil credit, which has been on the decline, when compared with the total domestic credit to the private sector.
Olaitan, who was represented by Fati Udoo of the department, noted that CBN is hopeful that the implementation of the facilities will improve export financing, access at single digit rate and opportunities to upscale and expand businesses.
However, the NEXIM chief said that the forum offered opportunity to formally unveil and discuss the implementation modalities of the ESF and the N50 billion Export Rediscounting and Refinancing Facility (ERRF).
The ERRF, by the new rule, has one year tenor, at six per cent interest rate, with a transaction limit of N2 billion to N5 billion, while ESF has a nine per cent interest rate and a maximum lending of N5 billion per single obligor, with a 10-year tenor.
Wali said that the ESF and RRF have come at the right time when positive steps are being taken by government to diversify the economy away from oil, enhancing revenue flow to the non-oil sector as a measure to trigger export growth and economic progress.
“Over the past few months, NEXIM has been working with the Central Bank of Nigeria to review existing policies and strategies towards increasing funding support and stimulating additional investments in the non-oil export sector.
“We have also met with various stakeholders, including Exporters, Commodity Associations, Bankers, the Organised Private Sector and other relevant government agencies to obtain strategic inputs and share perspectives towards achieving our common objective of diversifying the Nigerian economy.
“We expect that Nigerian export-oriented businesses will now seize the opportunity to expand and upscale their operations towards boosting the current low contribution of non-oil exports, which has remained at about five per cent over the years.
“We have also intensified collaborations with relevant institutions and stakeholders towards addressing other challenges like the problems of infrastructure, issues of packaging and labelling as well as improving access to market.
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1 Comments
This schemes are all good, however our economy needs direct investment. Let focus on improving our local production to reduce importation, and from increased local production, we begin the exporting of excess.
We will review and take appropriate action.