Director, Development Finance Department, Central Bank of Nigeria (CBN) Mr Mudashiru Olaitan has revealed that the apex bank has set up committee to review its policy on the non-oil Export Stimulation Facility (ESF) which includes N500 billion low interest rate non-oil export facility.
Business247 News Online recalls that the ESF was established to support the diversification of the economy away from oil and to expedite the growth and development of the non-oil export sector.
Olaitan, who was one of the guest speakers at the Finance Correspondents Associations of Nigeria (FICAN) 2016 annual conference held in Lagos over the weekend, noted 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.
He 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.
Olaitan said that 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.
Meanwhile, Mr. Tola Faseru, National President, National Cashew Association of Nigeria (NCAN) who was represented by Adeniji Adeyemi , Managing Director of Starlink Global and Ideal Limited, said the government needs not to finance exportation but only need provide an enabling environment.
He said government only needs to create a good atmosphere for export businesses to thrive.
Adeyemi, however, frowned at the export grant given to Nigerian exporters of raw materials to foreign country without processing it. He said the Export Expansion Grant (EEG) should be given to people that added value because people that export raw material are not adding any value, hence they do not deserve it.
“Am not a processor, if i want to be selfish, i should be fighting for myself but here am fighting for them because am not also a processor. If you are giving EEG to people who are exporting raw materials, the industry will never work”.