Lagos – The Acting Managing Director of the Nigerian Export-Import Bank, Mr Bashir Wali, on Friday urged exporters to take advantage of the N500 billion Non- oil Exporters Stimulation Facility (ESF) and the N50 billion Export Rediscounting and Refinancing Facility (RRF) by the Central Bank of Nigeria (CBN), to make their goods competitive at the International market.
Wali made the call at a stakeholders’ engagement session and media conference to formally unveil the modalities of the two intervention funding schemes in Lagos.
He added that exporters and export-oriented businesses were expected to seize the opportunity of the approval of the two intervention funding schemes and the release of the operating guidelines by the CBN to expand and upscale their operations.
The acting managing director said the facilities would help to boost the current low contribution of non-oil exports, which had remained at about five per cent over the years.
Wali said, “Let me also add that besides the issues of availability and access to funds, we have also intensified our collaborations and engagements with relevant institutions and stakeholders.
“This would help towards addressing other challenges affecting the export sector such as the problems of infrastructure, issues of packaging and labeling, as well as improving access to markets.”
He said the development represented the results of collective efforts and thanked the management of the CBN for providing the developmental funding schemes and for the timely release of the operating guidelines.
Mr Mudashiru Olaitan, Deputy Director of the Development Finance Department, CBN, said that the ESF and RRF were established against the backdrop of the fast dwindling oil revenue for the nation.
Olaitan, represented by his Deputy, Mrs Udoo Fateh, said that the facilities were in response to the need to urgently reposition the non-oil export sector to enhance its contribution to foreign exchange earnings
He added that the implementation of the facilities would improve finance, increase access of exporters to credit line at single digit interest rates.
The director said the facilities would also diversify the non-oil export basket, attract new investments towards sustainable economic development and enhance job creation.
According to him, the scheme supports the diversification of the economy away from oil and would expedite the growth and development of the non-oil export sector.
NAN reports that the guidelines for operating the fund, the CBN will invest in a N500 billion debenture to be issued by the Nigerian Export-Import Bank (NEXIM), in line with Section 31 of the CBN Act.
He added that the RRF would have a tenor of one year at six per cent interest rate per annum and a transaction limit of N2 billion to N5billion, while the ESF would be granted at a maximum of nine per cent interest rate per annum.
Olaitan added that it would have a lending limit of N5 billion per single obligors and a 10-year tenor. (NAN)
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