CBN Intervention Funds Boost Non-oil Export Earnings

The Central Bank of Nigeria(CBN) has said some companies who had gotten funds from its various intervention funds to grow their businesses are now enabling Nigeria increase its non-oil export earnings.

CBN director, Trade and Exchange department, Dr Ozoemena Nnaji, made this known during an on-site monitoring and evaluation of Pinnacle Oil and Gas FZE,

The Candel Company, Sana Building Systems (SBS) all in Lagos free zone which had accessed its various facilities in Lagos at the weekend.

Nnaji, after the assessment tour of SBS, which fabricates steel for constructions and buildings, said: “SBS is actually exporting some of their products here to our neighbouring countries, and that will earn us some foreign exchange.  We hope also that it can benefit from it RT200 export more, so that they can get the benefit of the rebate.

“Also, the multiplier effect of the company is huge, because we have people building this product to neighboring countries of Cameroon and Ghana where they have done business, and also have companies here that is utilising their materials and their product.”

On his part, the president, SBS, Mr. Ken Krieger praised the inventions of CBN in the real sector and his company. “This factory is the result of the funding that we’ve received and without that support, honestly, we could not have made it happen. So, we’re very grateful that the CBN is diligent in building the economy. We are now exporting into Cameroon, currently, we have projects quoted for Ghana and the Ivory Coast also,” he said.

Meanwhile, the director, Banking Supervision department of the CBN, Mr. Mustapha Haruna, noted that, the intervention funds of the apex bank are targeted at critical sectors that would boost not just job creation but also help the country earn more foreign exchange.

He said,  companies who keyed into the various interventions such as anchors borrowers’ program, Real Sector Support Facility Discretionary Cash Reserve Ratio (RSSF- DCRR), and others from  the CBN are set to benefit the RT200 policy of the CBN.

“There is a clear validation of the strategic wisdom behind the various interventions of the Central Bank of Nigeria particularly to support the real sector. Candle stands at two critical junctures. One is the manufacturing outfit, as you recall recently, the central bank introduced the RTX 200 policy designed to boost the non-oil sector and what Candel is doing here is quite complementary to that policy.

“The support the central bank has given in terms of promoting the growth of the real sector is quite strategic. And given the potential benefits, both in terms of employment generation and the impact across the entire value chain is quite massive. We need more of these types of efforts on the part of the private sector.

“I supervise the banks and banks need bankable projects like this to be able to thrive. So, there’s a sense in which all these dots connect all for the benefit, ultimate benefits of promoting the growth and development of the Nigerian economy at large,” he pointed out.

Also, head, Legal Services Department of CBN, Mr Kofo Salam-Alada, during a visit to Candel Company Ltd., called on banks to support Nigerian companies to grow production in the country.

“With what the company is doing I believe that bankers should actually start coming for them; it’s not just the Central Bank’s Intervention Funds, Nigerian banks should actually seek them to see how they can partner with them to drive it forward.

“The key thing that Nigerians must also know is that we need to support our own, not just in terms of employment generation; for the CBN that is interested in increasing foreign exchange in this country, it is something that needs to be supported,” he said.