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The Central Bank of Nigeria has given conditions for the assessment and implementation of its N500 billion export stimulation facility (ESF) for export-oriented enterprises.
The Non-Oil Export Stimulation Facility (ESF) was established by the Central Bank of Nigeria (CBN) to diversify the economy away from oil and to expedite the growth and development of the non-oil export sector. The recent fall in global prices of crude oil triggered a sharp decline in the country’s revenue and foreign exchange earnings.
The apex bank, in its guideline for the implementation of ESF informed that the Nigerian Export -Import Bank (NEXIM) will be the body to manage the Non-Oil Export Stimulation Facility (ESF) saying “NEXIM shall be responsible for the day-today administration of the (ESF) Facility and rendition of periodic reports on the performance of ESF to CBN.
The facility is essentially designed to redress the declining export credit and reposition the sector to increase its contribution to revenue generation and economic development. The apex bank also believes that the facility ‘will improve export financing, increase access of exporters to low interest credit and offer additional opportunities for them to upscale and expand their businesses in addition to improving their competiveness.
While the CBN maintained that only export-oriented enterprises shall be eligible under the ESF, it specifically pointed that only companies incorporated in Nigeria under Companies Allied Act with satisfactory credit reports from at least two Credit Bureaus in line with the provision of CBN Circular BSD/DIR/GEN/CIR/04/014 dated April 30, 2010 will be allowed to access the N500 billion ESF facility.
The apex bank also said enterprise(s) Eligible Bank Asset (EBA) purchased by Asset Management Corporation of Nigeria (AMCON), that may by special approval of the CBN Management, will be allowed to participate with respect to acquired projects of national economic importance, proven potentials to export, good prospects to attract new investors and ability to repay EBA obligations to AMCON.
Goods considered for eligible transaction under the ESF facility are “ (i)goods wholly or partly processed or manufactured in Nigeria; (ii) Export of commodities and services, which are permissible and excluded under existing export prohibition list (iii) Imports of plant & machinery, spare parts and packaging materials, required for export oriented production that cannot be produced locally; (iv) Export value chain support services such as transportation, warehousing and quality assurance infrastructure.
KEHINDE ABDULSALAM
