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| Godwin Emefiele |
This
intention or plan of the CBN and NEXIM in making the N500 billion available is
not only good but commendable given the dire need for funds to drive
manufacturing and exportation of non-oil products to facilitate the needed
diversification of the Nigerian economy away from crude oil. If implemented, it
will be a boost to the level of available funds to manufacturers for the
enhancement and expansion of their businesses, provided the access
conditionalities are not onerous. It is the availability, accessibility and
effective utilisation of the fund that will bring about the realisation of the
benefits intended by the fund providers.
Hmmm!!! Folks, let us say
the truth and shame the devil. Many Nigerian non-oil products exporters have
been defrauded of huge amount of money in the process of exporting agricultural
commodities and solid minerals to foreign countries. Do you know why? They were
not trained on export operations, management, documentations and the best
methods of payment in export trade. This is terrible!!! Nigerians cannot
continue to lose money to foreigners in the course of export business.
Exporters, would you like to keep on being scammed? Why don’t you get a
practical manual that explains the stages of export trade from processing and
packaging of commodities to receipt of payment by the foreign buyers? It
explains export operations, export management, export documentations and
methods of payment in export trade? Yes, it is a contemporary step-by-step
guide to export trade. It tells all the contemporary dynamics in export trade.
To get it, click on the link below:
Some
of the positive outcomes that should be expected from the realisation of the
CBN/NEXIM fund will include, stimulation of economic productivity and growth in
gross domestic product (GDP) through increased production and exportation of
non-oil goods; earning of foreign exchange and improvement in the country’s
foreign reserves; appreciation in the exchange rate of the domestic currency,
the Naira; creation of jobs or reduction in the level of unemployment and its
attendant social ills. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
There will also be a decline in inflation rate, improvement in household income
and an improvement on the welfare of the people.
The
companies that will judiciously utilise the credit will report expanded
production, increment in revenue, profits and returns to their shareholders.
The government will also benefit in terms of enhanced tax income. Manufacturing
capacity utilisation will be significantly improved upon. On the whole, the
economy will witness greater diversification, more value-added products and
less dependence on crude oil for national revenue. An economy with these
characteristics, no doubt, promises much to the citizens’ well-being and
happiness.
As the
N500 billion is expected to be a real sector development finance, it should,
therefore, be of very low interest rate and firms that should be allowed to
access it should be those with the capacity to deliver positive results towards
a better economic performance of the country.
Given
previous experiences, the fund will be dispensed to borrowers through deposit
money banks (DMBs). The conditions for the on-lending should be crafted in ways
that the development nature of the credit will not be impaired. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
When on-lending is with recourse to the on-lender, it is the borrowers that
suffer the burdensome conditionalities that follow such recourse. Indeed, in
many previous cases, the funds provided by the authorities to enhance credit
availability in the system ended up not being accessed by the target economic
agents because of the attached conditions. Even when efforts were exerted to
ensure they were accessed, repayment became herculean, also because of the
approval requirements.
This
time around, for the CBN/NEXIM fund to meet the expectations of its target
small manufacturers and the Nigerian people, there is the need for a thorough
assessment of some of the past development finance efforts to determine, first,
the causes of their significant non-achievement of the intended purposes or
their total failure; and secondly, how such causative factors should have been
prevented or resolved. The findings will provide good insights on how the
present fund can be positioned and managed to yield bountiful positive gains
for the Nigerian economy and all citizens. That way, a sustainable recovery
from economic recession can be assured.
The
CBN/NEXIM have the capacity to structure the accessibility of the N500 billion
fund in ways it will positively impact the small manufacturing enterprises and
the over-all macro-economy in Nigeria. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
As it were, it is not enough to make credit available, serious attention must
be paid to its easy accessibility, proper utilisation for intended purposes and
ultimately, repayment in line with approved conditions. Thus, right from the
on-set, huge responsibilities are not just on the on-lending DMBs but even the
providers of the fund, CBN/NEXIM. What with the spate of rising cases of
non-performing loans and, in many cases, total defaults.
DMBs,
which are the channels through which the fund will be made available to the
manufacturers, must appreciate the essence, significance and importance of this
and other development finance credits and implement them professionally without
putting unnecessary obstacles on the paths of prospective borrowers. This is
one major area in which patriotism is required. Consequently, right from the
beginning, DMBs must sit down with CBN/NEXIM and where need be, representatives
of the target beneficiaries of the fund to consider and determine reasonable and
acceptable requirements for accessing the credit. Such a tripartite dialogue
will most certainly produce better understanding towards successful
implementation of the scheme. (Guardian)
Have you heard this? Many
Nigerian exporters have been defrauded of huge amount of money in the process
of exporting commodities to foreign countries. Do you know why? They were not
trained on export operations, management, documentations and the best methods
of payment in export trade. This is terrible!!! Nigerians cannot continue to
lose money to foreigners in the course of export business. Exporters, why don’t
you get a practical manual that teaches the stages of export trade from
processing and packaging of commodities to receipt of payment by the foreign
buyers. It teaches export operations, export management, export documentations
and methods of payment in export trade? It is a contemporary step-by-step guide
to export trade. It tells all the contemporary dynamics in export trade. To get
it, click on the link below:
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