The Central Bank of Nigeria (CBN) has disclosed its determination to resolve all bottlenecks and issues relating to the non-oil Export Stimulation Facility (ESF), including N500 billion low interest rate non-oil export loans.
As part of its efforts in achieving this, the apex has set up a committee to review its policy on the ESF. However, it is important to note that the ESF was established to support the diversification of the nation’s economy away from oil and to expedite the growth and development of the non-oil export sector.
Speaking at the Finance Correspondents Associations of Nigeria (FICAN) 2016 annual conference, held in Lagos over the weekend, the director, Development Finance Department, CBN, Mr. Mudashiru Olaitan, said that the policy review was to enhance value addition and engender productivity in the non-oil export trade policies, so as to boost the nation’s economy.
Olaitan explained that the intended modified policy would increase sufficient employment capabilities, high growth potentials, increase accretion to foreign reserves, expand the industrial base and consequently diversify the economy.
According to the apex bank director, the current facility with a tenor of up to three years would be granted at a maximum all-in interest rate of seven and half per cent per annum; facilities with tenor of over three years would be granted at a maximum all-in interest rate of nine percent per annum.
“The objective of the modification is also to improve access to finance by the agricultural value chain, manufacturing, mining, solid minerals activities and other strategic sub-sectors of the Nigerian economy.
Also, the managing director of Starlink Global & Ideal Limited, Adeniji Adeyemi pointed out that the government needs to provide an enabling environment, so as to create good atmosphere for export businesses to thrive.
Adeyemi, who is also an exporter of cocoa in the country, however, frowned at the export grant given to the Nigerian exporters of raw materials to foreign country.
He explained that the Export Expansion Grant (EEG) should be given to people that added value, most especially those that export processed products, adding that people that export raw material are not adding any value and do not deserve such support.