Connect with us

Business

How to access CBN’s new Non-oil export fund

Published

on

Emefiele

The Central Bank of Nigeria has issued a guideline to access its Non-Oil Export Stimulation Facility (NESF). The fund was introduced to diversify the revenue base of the economy and to expedite the growth and development of the nation’s non-oil export sector.

This was disclosed in a document published on the apex bank’s website. The facility, according to the document, will help redress the declining export financing and reposition the sector to increase its contribution to economic
development.

Objectives of the Facility

*  Improve access of exporters to concessionary finance to expand and diversify the non-oil export baskets;

* Attract new investments and encourage re-investments in value-added non-oil exports production and non traditional exports;

* Shore up non-oil export sector productivity and create more jobs;

*Support export-oriented companies to upscale and expand their export operations as well as capabilities; and
* Broaden the scope of export financing instruments.

Who qualifies for the fund

* Firms that are duly incorporated in Nigeria under the Companies and Allied Matters Act (CAMA) and have verifiable export off-take contract(s).

* Satisfactory credit reports from at least two Credit Bureaux in line with the provisions of CBN Circular BSD/DIR/GEN/CIR/04/014 dated April 30, 2010.

* All applications shall be in compliance with CBN circulars BSD/DIR/GEN/LAB/07/015 and
BSD/DIR/GENLAB/07/034 on “Prohibition of Loan Defaulters from Further Access to Credit Facilities in the Nigerian banking System” and “Guidelines for Processing Requests from DMBs to Extend New/Additional Credit Facilities to Loan Defaulters and AMCON Obligors” dated June 30, 2014 and October 10, 2014, respectively.

Eligible Transactions

* Export of goods processed or manufactured in Nigeria;

* Export of commodities and services, which are allowed under the laws of Nigeria and do not violate the principles of non-interest banking and finance;

* Imports of plant & machinery, spare parts and packaging materials, required for export-oriented production that cannot be sourced locally;

* Resuscitation, expansion, modernization and technology upgrade of non-oil export industries;

* Export value chain support services such as transportation, warehousing and
quality assurance infrastructure;

* Working capital/stocking facility; and

Participating Financial Institutions (PFIs)

* Non-Interest Banks (NIBs).
* Non-Interest Development Finance Institutions (NI-DFIs).

Features of the NESF

* Financing Limit Term financings under the Facility shall not exceed 70% of verifiable total cost of the project subject to a maximum of ₦5,000,000,000.00.

Tenor

The NESF shall have a tenor of up to 10 years and shall not exceed the 31st December, 2027.

Working capital/stocking facility shall be for one year. Where applicable, the facility can be rolled-over twice on a reducing balance basis of 33.3% of the original amount.

Repayment

Repayments of principal and return shall be quarterly and in accordance with the agreed repayment schedule.

Moratorium

* Moratorium shall be project-specific and shall not exceed two (2) years.

* In case of construction, additional moratorium of up to one (1) year may be allowed, subject to approval by the CBN.

* Rates of Return: The Facility shall be granted at an all-inclusive rate of return of 9% per annum.

Application Procedures

A PFI shall submit application to CBN on behalf of its customer in the prescribed format.

In the case of financing syndication, the lead bank shall submit application on behalf of other banks. All correspondence with respect to the application shall be with the lead
bank.

Each request for a facility is to be accompanied by the following documents:
a) Written request from the project promoter to a PFI seeking financing under the NESF.

b) Completed application form.

c) Certified true copies of documents on business incorporation.

d) Three (3) years tax clearance certificate.

e) Audited statement of accounts for the last three (3) years (where applicable) or the most recent management account for companies less than three (3) years in
operations.

f) Feasibility study/ business plan of the project.

g) Relevant permits/ licenses/ approvals (where applicable).

h) Verifiable export orders/ contracts or other export agreement and arrangements/ commitments.

See details of the guidelines here

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Nigeria signs MoU with Niger Republic on petroleum products transportation, storage

Published

on

By

The Federal Government has signed a Memorandum of Understanding (MoU) with Niger Republic on the transportation and storage of petroleum products.

This was disclosed by the Ministry of Petroleum Resources via its Twitter handle on Thursday.

It tweeted, “Nigeria, Niger Republic Sign MoU on Petroleum Products Transportation, Storage. NNPC Pledges to Support SONIDEP on Capacity Building.”

The MoU was signed by the GMD NNPC, Mallam Mele Kyari and the Director General of SONIDEP, Mr. Alio Toune under the supervision of the two countries’ Ministers of State for Petroleum, Çhief Timipre Sylva and Mr. Foumakoye Gado, respectively with the Secretary General of the African Petroleum Producers Organisation (APPO), Dr. Omar Farouk Ibrahim in attendance.

Sylva explained that the development is another huge step in developing trade relations between both countries.

He said, “This is a major step forward. Niger Republic has some excess products which needs to be evacuated. Nigeria has the market for these products. Therefore, this is going to be a win-win relation for both countries.”

What you should know

Following bilateral agreements between Nigeria’s President Muhammadu Buhari and President Mahamadou Issoufou, talks have been on-going between two countries for over four months – through the Nigerian National Petroleum Corporation and Niger Republic’s National Oil Company, Societe Nigerienne De Petrole (SONIDEP), on petroleum products transportation and storage.

Niger Republic’s Soraz Refinery in Zinder, some 260km from the Nigerian border, has an installed refining capacity of 20,000 barrels per day. Niger’s total domestic requirement is about 5,000bpd, thus leaving a huge surplus of about 15,000 bpd, mostly for export.

Continue Reading

Business

House of Reps to support full aviation reform

Published

on

By

The House of Representatives has promised to support total reforms in the aviation industry through legislation, as it appeals for active participation of stakeholders in public hearings.

This was disclosed by the Speaker of the House of Representatives, Femi Gbajabiamila, via his Twitter handle on Tuesday.

According to him, the House has identified that the aviation industry is a key contributor to the growth of the country’s economy and through legislation it would do all it can to develop the industry.

During the opening of a 3-day public hearing session on six aviation-sector bills by the Committee on Aviation, he explained that the draft legislation would make the sector more effective and efficient.

He said, “It is imperative to note that the development of our aviation industry is an added advantage to the growth of our economy. It is in this vein that the House of Representatives will continue to support total rehabilitation and upgrading of our airports and allied services.

“The consideration of these Bills during this Public Hearing is a testament to our commitment to give new life to the aviation sector and make our airports to be a better non-oil revenue-generating sector as is witnessed in other advanced economies.”

The Speaker appealed to the public and interested parties to honour invitations to House committee public hearings so that they can share ideas on how to make critical sectors deliver optimally.

Continue Reading

Business

Hoodlums loot Shoprite store in Ilorin, stole iPhone 11 mobile sets, others

Published

on

By

Some suspected hoodlums l allegedly looted the Palms Mall on Fate road, Ilorin, Kwara State capital. The mall hosts stores of Shoprite, and Lifemate Furniture among other stores including Mobile phones retailers.

This was revealed by an eye witness.

He said, “They allegedly stole iPhone 11 mobile sets, other mobile sets brands, Refrigerators, and households items among others.”

According to him, the suspected hoodlums forced their way into the Mall after they have stormed and allegedly looted Kwara Agro Hall, an agro resettlement centre, where they carted away Aluminium roofing sheets, mattresses, bags of cement and bags of flour among others.

Back story: Similarly, similar incidents had occured in Lagos when suspected hoodlums looted at Shoprite Malls across Surulere, Sangotedo.

According to reports, suspected thugs from Orile have invaded the mall and the neighbourhoods.

The alleged looters were seen with a cartload of goods on the streets along Ajah Road.

An eyewitness account also submitted that the hoodlums were looting shops around Bode Thomas and Adeniran Ogunsanya.

Continue Reading

Trending

Copyright © 2020 Financial Angle