Central Bank of Nigeria CBN has
announced plan to revamp the N500
billion Export Stimulation Fund for
the promotion of non-oil exports
in the country using the Anchor
Borrowers’ Programme model. This
is even as the Bank has introduced
a N50 billion direct intervention
funding for the Nigeria Export Import
Bank (NEXIM). A statement from the
apex bank yesterday explained that
the move was in bid to diversify the
country’s economy away from oil, in
line with the Federal Government’s
economic plan.
The Governor of the CBN, Mr.
Godwin Emefiele disclosed that the
effort was expected to increase the
volume of non-oil exports, which
will subsequently increase the
amount of foreign exchange inflow
into the economy.
While addressing the media during
bankers’ committee meeting in Lagos
he explained that the intervention
was in furtherance of the country’s
efforts to diversify the economy and
develop sources of foreign exchange
in addition to earnings from crude
oil.
“We want to encourage exporters
with the N500 billion Export Facility
to increase the volume of export
earnings that is routed back to
the economy to help us grow the
economy,”
Emefiele identified the agricultural
sector as critical and one that should
be developed in the country’s effort
to diversify the economy because
that was the sector that historically
sustained Nigeria’s economy before
the advent of oil. He said the new
programme would encourage
a policy of value addition to
agricultural produce before export
rather than the current situation of
exporting raw unprocessed produce.
Accordingly, he said a team
comprising of NEXIM, the
Development Finance Department of
the CBN and the Office of the Special
Adviser to the CBN Governor on
Agriculture had been constituted
to review the existing framework
for the Stimulation Fund on how
it will be disbursed, to make it allencompassing.
He added that the current effort
was hinged on a policy of Produce,
Add-Value and Export (PAVE)
aimed at encouraging exporters to
advance beyond merely exporting
raw materials to adding value to
the products through processing
exportable items. Explaining the
rationale for this approach, the
Governor noted that the processing
of agricultural produce before export
would create jobs for Nigerians and
generate revenue for the country.
Speaking further, the Governor
identified some of the agricultural
produce that would be supported
with the funds to include cocoa,
cashew nuts, palm produce, sesame
seeds and rubber. He added that
the solid minerals sector would
also benefit from the facility. As an
additional means of both creating
jobs and increasing exports, he
added that the CBN would provide
needed support to revive erstwhile
exporting companies of processed
agricultural produce that are now
moribund.
While acknowledging that some
incidences of undocumented export
transactions in the system, he called
on the exporters to desist from such
adding that only documented export
transactions would be funded by the
intervention.
Mr. Emefiele further stated that
before the funding is provided to
the exporters, they would have
to commit, through their banks
and NEXIM, the volume of export
earnings to be routed back to
the country to support economic
activities and other foreign exchange
commitments. A detailed framework
for the disbursement of the funds is
expected to be released shortly.

READ ALSO  FG urged to align maritime agencies

Loading...
loading...
SHARE