Exporters to scale up operations as NEXIM, CBN flag off N500bn facility

Nigerian exporters can now upscale their operations towards boosting the current low contribution of non-oil exports, which has remained at about 5 percent over the years, with the N500 billion Export Stimulation Facility (ESF) and the N50 billion enhancements on the Rediscounting and Refinancing Facility (RRF) set up by the Central Bank of Nigeria (CBN).

This is as the Nigerian Export-Import Bank (NEXIM) has been appointed by the Federal Government as managing agent of the two facilities.

Bashir Wali, acting managing director/CEO, NEXIM, said over the past few months, the Nigerian Export-Import Bank had been working with the CBN to review existing policies and strategies towards increasing funding support and stimulating additional investments in the non-oil export sector.

The two regulatory agencies 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 as well as improving and broadening the contribution of the non-oil export sector to our national development.

“I am therefore pleased to observe that the approval of the two intervention funding Schemes and release of the Operating Guidelines by the CBN represent the result of our collective efforts,” Wali said at the official commencement of the facilities in Lagos.

“Besides the issues of availability and access to funds, we have also intensified our collaborations and engagements with relevant institutions and stakeholders towards addressing other challenges affecting the export sector such as the problems of infrastructure, issues of packaging and labelling as well as improving access to market”, he said.

Speaking at the forum, Mudashiru Olaitan, director, development finance department, CBN, said the two facilities were established by the CBN against the background of the fast dwindling oil revenue and the need to urgently reposition the non-oil export sector to enhance its contribution to foreign exchange earnings of the nation.

Represented by Fateh Udoo, assistant director, development finance department, CBN, Olaitan said the facilities would improve export financing, increase access of exporters to credit at single digit interest rate and opportunities for them to upscale and expand their businesses.

It will diversify the non-oil export baskets; attract new investments towards sustainable economic development and job creation for the youth.