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NEXIM Nigeria

NEXIM Bank begs SMEs in S’East, Delta State to access loans from its N550bn

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The Nigerian Export-Import Bank (NEXIM) has called on export-oriented Small and Medium Entrepreneurs (SMEs) in the Southeast and Delta States to access the N500bn Export Stimulation Facility (ESF).

They are also advised to go for the N50bn Export Development Fund being managed by the Bank to boost their businesses, create more jobs, and contribute to the foreign exchange revenue earnings of the country.

In a statement by the Managing Director and CEO of NEXIM, Mr. Abba Bello, released by the Bank’s Enugu Regional Office after a one-day seminar on ‘LEVERAGING NEXIM BANK FACILITIES TO UNLEASH YOUR EXPORT POTENTIAL,’ the bank said “The facilities were made available to NEXIM Bank last December and will lend at a maximum of 9% interest rate”.

The seminar held at the Oaklands Centre, Enugu, organised by the Bank and the SME Centre, Enugu.

Bello averred that “The facilities were designed to redress the declining export credit to SMEs and reposition the non-oil sector to increase its contribution to the country’s revenue generation and economic development. The improved export financing for non-oil exporters will enable them to upscale and expand their businesses and improve their competiveness”.

The N50 Billion Export Development Fund will be managed by NEXIM and implemented in collaboration with the State governments. NEXIM has earmarked at least N1 billion for each State under the State Export Development Programme component aimed to catalyse and incentivize export investment to promote diversification and industrialization.

Through the Programme, NEXIM Bank will also have a programme for Women/Youth Development, especially to provide support to industries that are involved in Apparel/Garmenting, Cashew, Shea, etc.

The Central Bank Governor, Mr. Godwin Emefiele had stated at the announcing of the funds in December 2017 that the ESF can also be implemented by adapting the Anchor Borrowers Programme (ABP) framework while promoting the PAVE initiative.

Explaining more on behalf of Bello, the Head of the Bank’s Enugu Regional Office, Mr. Chinedu Moghalu observed that the funds are being made available to the NEXIM by the Central Bank of Nigeria at a time the Bank has decentralized its operations to all the regions of the country for easier accessibility of its products and services to maximize their impacts.

According to him, “NEXIM Bank is determined to ensure these funds achieve the desired impact of triggering non-oil export development, growth and economic progress in line with its mandate as the Trade Policy Bank of the Federal Government and the applicable CBN guidelines for the implementation of the facilities.”

The representative of the Enugu State Governor and Special Assistant on SME Development, Mr. Anayo Agu, said “The programme has come at the right time. According to him, “the opening of NEXIM Bank Regional Office for the Southeast and Delta States in Enugu, and the invitation to the SMEs to access affordable non-oil export facilities, had been the missing link in the efforts of various Governments in the region to derive maximum benefits from their investments in the SME value chain, especially in the agriculture and other non-oil sectors. It provides us the platform to reach heights we could only dream about before now.”

“The objectives of the ESF as contained in the CBN guidelines are to: a) Improve access of exporters to concessionary finance to expand and diversify the non-oil export baskets; b) Attract new investments and encourage re-investments in value-added non-oil exports production and non-traditional exports; c) Shore up non-oil export sector productivity and create more jobs; d) Support export oriented companies to upscale and expand their export operations as well as capabilities; e) Diversify and increase the level of contribution of non-oil exports revenue towards sustainable economic development; and f) Broaden the scope of export financing instruments.

“The transactions permissible for funding under the ESF include, export of goods wholly or partly processed or manufactured in Nigeria; export of commodities and services, which are permissible and excluded under existing export prohibition list; imports of plant and machinery, spare parts and packaging materials, required for export oriented production that cannot be produced locally.

“Other businesses eligible under the ESF are export value chain support services such as transportation, warehousing and quality assurance infrastructure; resuscitation, expansion, modernization and technology upgrade of non-oil exports industries. Stocking facility and working capital can also qualify for funding under the ESF.

Moghalu added that potential applicants to the ESF can either send their requests through their local commercial banks or directly to NEXIM as the revised CBN guidelines assigns the Bank a dual role of both manager and participating financial institution.

He disclosed further that “The overall aim of the ESF and EDF is to lower the costs of Nigerian exporters so that their products can be priced at a level where they can compete with other products around the world.”

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