This
mandate, as stated above by its Managing Director and Chief Executive, Mr. Abba Bello, received a fillip when
the Central Bank of Nigeria (CBN), last December, reinstated the N500 billion
Export Stimulation Facility (ESF), as well as NEXIM’s N50 billion Direct Intervention
Fund (DIF) to boost the non-oil export.
At Beloxxi Industry Limited, Agbara and Multi-Trex Integrated Foods Ltd, Wawa,
both in Ogun State, last week, Bello gave hints on how the fund would be
deployed to boost non-oil export in the country.
He
explained: “With the dearth of biscuit manufacturing in
Nigeria, it meant that most biscuit consumed in Nigeria was imported. So, NEXIM
came in to support Beloxxi from the outset of the business. First for import
substitution and then to facilitate the export of Beloxxi biscuits. What we’re
doing today is expansion of the plant and finance.
“NEXIM’s contribution is in the region of N1 billion, and as we are
talking now, Beloxxi has even paid up the facility and we are having
discussions on granting further enhancement and new facilities. We wish this
could be multiplied a thousand times across the length and breadth of this
nation for creation of employment and value addition, as well as export from the
same axis and manufacturing plant. That is what we are campaigning for, that we
should produce, add value and export.”
When
NEXIM team and members of the House of Representatives Committee on Banking and
Currency visited Multi-Trex at the weekend, the NEXIM boss said: “This is one of the best projects we have supported under the
ESF because the equipment are there. What they need is just working capital,
which means, whatever we lend will be turned around. Maybe every 180 days. By
the end of the second quarter, we should be able to finance the project.”
Recall
that at a meeting with the export stakeholders last December, the CBN Governor,
Godwin Emefiele, had said they were
planning to introduce an initiative called PAVE,
meaning Produce; Add Value and Export for various products in the non-oil
sector such as cocoa, cashew nuts, palm produce, sesame seeds, solid minerals
and rubber.
He
added: “Like we all agreed at the meeting, that there
was a time we were exporting, but up till recently, the export we really
conduct now is more of raw agricultural produce. We are saying that in order to
create jobs for our people, there is a need for us to advance further to value
addition and begin to talk about processing of exportable items. Rather than
exporting raw cashew, we are thinking of exporting processed cashew. Rather
than exporting raw cocoa, we are thinking of giving support to companies that
process cocoa to cocoa butter and cakes and all that.
“We also know that there are some of the Nigerian companies that
have benefited from some of our export stimulations facilities in the past and
some of them still remain moribund. And we have also told our development
finance department to take a look at companies like Multi-Trex. There is also
another company that is into cocoa processing somewhere in Ibadan. We are going
to be working with them to see that we really get their production back on
track. By doing this, we are going to be creating more jobs for our people.
Other than just creating jobs, we will see that it will afford opportunity to
increase our export earnings for the good of the country because those export
earnings are also necessary.”
The
Vice Chairman/Managing Director of Multi-Trex, Mr. Dimeji Owofemi, explained to the visitors that if the company
is revived, it could create 1,500 jobs and process 65,000 tonnes of cocoa at full capacity. He stated that
what is needed to bring it back to life is between N4 billion and N5 billion working capital.
He
added: “The CBN is also making efforts. They have
addressed exporters that they are going to set up a N500 billion fund and also
another N50 billion for NEXIM to help exporters like us. The CBN Governor
sounded very serious on December 8 when he called all of us to his office and
was particularly interested in Multi-Trex. At Multi-Trex, we add value to a
major agricultural commodity in the country, cocoa.”
On how
the company became moribund, he said: “We were forced
to finance the expansion with loans, whereas at the beginning, we set out to
raise equity. But it was during 2008 when our private placement had a technical
failure because it was beyond our control to force those who underwrote the
facility to pay up. We erred on the side of perfection by obtaining a cheque
against their underwriting. For that reason, we couldn’t force them to go
beyond 50 per cent of what they underwrote.
“At the time we did the N6 billion, we would have been sufficient.
But because we started when the exchange rate was N114 to the dollar, and
finished it at N140, N155. Even at that, it has become a goldmine for an
investor that has a discerning mind. But most investors want reward for
yesterday while the investment is done today. Unfortunately, in practical terms
it doesn’t work that way. That is how we
got to where we are today.”
In his
comment, the Chairman of the Committee, Jones
Onyeriri, pledged his committee’s support to encourage the private sector.
He
said: “We are excited that we visited Multi-Trex today
for the simple reason that it is part of our oversight function because we oversee
the operations of NEXIM, but more importantly because of our belief that we
need to encourage the private sector. My committee has been on this drive for
more than six years.
“We believe that the middle class in Nigeria is completely extinct.
And the only way to recreate the middle class will be to encourage the private
sector. It is very annoying that we pride ourselves as the biggest economy in
Africa and yet, our private sector contribution to GDP is next to nothing.
“The machinery is on ground, as I said earlier on; we must encourage
the private sector. That is the only way to grow the economy. If we don’t grow
the real sector of the economy, we are just joking.”
Bello,
corroborating Owofemi on how to revive the plant, said: “The N500 billion ESF is ready for disbursement. Right now, we are ready
to start processing Multi-Trex application. What we are waiting for is the
terms of settlement, the resolution between them and AMCON because AMCON should
be able to release them for them to be able to borrow. So once AMCON gives them
the approval, then we are good to go.” (Sun)
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