CBN to review non-oil Export Stimulation Facility policy

There are strong indications that the Central Bank of Nigeria, CBN, may soon releasea revised version of its policy
on the N500 billion Non-Oil Export  Stimulation Facility (ESF) specifically designed to support non-oil export businesses in the country.
Giving this hint when he spoke as one of the Guest speakers at the Finance Correspondents associations of Nigeria (FICAN) 2016 Annual conference held at the weekend in Lagos, the apex bank’s Director, Development Finance Department, Dr. Mudashiru Olaitan, explained that the policy review move 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 modify 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 percent per annum; facilitieswith tenor of over three years would be granted at a maximumall-in interest rate of nine percent per annum. Olaitan said that the objective of the modification was also to improve access to finance by the agricultural, manufacturing, mining, solid minerals value chains and other strategicsub- sectors of the nation’s economy.

Earlier in his paper, the National President, National Cashew Association of Nigeria (NCAN), Mr Tola Faseru, said the government needed not to finance exportation but only need provide an enabling environment.

Faseru, who was representedby Mr. Adeniji Adeyemi , Managing Director of Starlink Globaland Ideal Limited, 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 not only be reintroduced but that it should be given to entrepreneurs that add value to the nation’s economy since those that export raw material are not adding any value, hence they do not deserve it .

“I am not a processor, if I want to be selfish, I should be fighting for myself but here am fighting for them because I am not also a processor.

“If you are giving EEG to people that are exporting raw materials, the industry will never work, because people that that supply raw material do pay tax as get to their to the destination. People that are processing raw material pay 5percent tax because they do not want them to be doing it”, Adeyemi added.

National Mirror 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.