We
gathered from reliable sources that only N20bn had so far been disbursed from
the fund. According to the operators, Deposit Money Banks have forwarded
requests on behalf of their customers to the CBN through the Nigerian
Export-Import Bank for access to the fund but the apex bank has yet to respond.
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:
The
NESF was initially launched in June 2016 by the CBN, but was repackaged and
re-launched in December 2017. The facility was designed to boost activities in
the non-oil sector. The CBN said in its guidelines for operating the fund that
it was established to support the diversification of the nation’s economy away
from oil, and to expedite the growth and development of the non-oil export
sector.
“The CBN will invest in a N500bn debenture to be issued by the
Nigerian Export-Import Bank in line with Section 31 of CBN Act,” the apex bank had stated in
the guidelines, adding that the facility was essentially designed to redress
the declining export credit and reposition the sector to increase its
contribution to revenue generation and economic development.
The
fund is specifically designed to provide long-term concessionary funds to
support existing or new export-oriented projects through the provision of term
loans at a single-digit interest rate for tenors up to eight years, with
moratorium of up to two years, or as working capital/stocking facility.
The
Managing Director, NEXIM Bank, Mr. Abba
Bello, had during a one-day seminar on export potential urged operators in
the Small and Medium Enterprises sector to access the fund and its counterpart,
the N50bn Export Development Fund being managed by NEXIM Bank.
In a
March circular titled: ‘Circular to All Deposit Money Banks and Development
Finance Institutions on the Commencement of the Non-oil Exports Stimulation
Facility’, the CBN said it had commenced the implementation of the loan scheme.
When
contacted for comments, the spokesperson of the CBN, Mr. Isaac Okorafor, declined to pick his calls or answer text
messages sent to his mobile telephone. The non-disbursement of the fund has
forced exporters to return to the traditional mode of borrowing from the banks
at high interest rates. Borrowing at interest rates of between 23 and 27 per
cent to fund exports amounts to wasting energy and resources on a fruitless
venture, according to the operators.
“Borrowing money at such a high interest rate does not make the
exporter competitive or profitable, one is only struggling to stay afloat,” the Publicity Secretary,
National Cashew Association of Nigeria, Mr.
Sotonye Anga, said.
He
added, “The high interest rate was what the NESF was
meant to address. We saw the fund as a lifeline. In addition to the high
interest rates, bank loans are of short tenor and banks will put pressure on
you to pay before the money can be used for anything.
“The cost of funding is too high and it goes into the cost of doing
business. It is very frustrating, considering the fact the same goods we sell
are sold in Ghana and other countries where the cost is much lower.”
A
consultant in the agricultural processing value chain, Gandu Victor, described the government fund as ‘paper money,’
saying, “Government likes to make all kinds of noise
about diversifying the economy and growing the non-oil export sector.
“At one point, a committee was set up to produce 1,000 exporters
from each of the six geopolitical zones. The Customs and other agencies were
involved. After the initial noise, the entire thing fizzled out.
“There is no export structure in Nigeria. The government is not
serious about growing the non-oil export sector like the way it is done in
other African countries. It is very sad because this is the time we should
really get serious.”
Gandu
added that even when people attempt to access government funds, they were
usually confronted with stringent conditions that would make it difficult to
get the money out in time to supply goods to buyers.
“For a facility that should ordinarily take 30 days, they will keep
you in the queue for 120 days or more, eventually you may not get the money and
the bank must have deducted administrative charges, processing fees and other
fees from your account. The exporter can never reapply for such a fund,” he noted.
According
to the National Bureau of Statistics,
the non-oil export sector recorded N577.6bn revenue in the first quarter of
2018 and the Nigerian Export Promotion
Council is confident that the sector can generate more if the challenges
are removed.
“The sector is faced with huge challenges, chief among is the port
access road and high cost of exporting goods,” the Regional Coordinator, South West,
NEPC, Mr. Babatunde Faleke, said.
He
expressed hope in the N500bn NESF, noting that the sector could generate more
than N1bn per quarter if exporters had access to single-digit interest loans.
“We believe that the funds will be disbursed. Our officers have gone
round to ascertain people who are qualified among the applicants,” he said.
The
Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf, lamented that access to capital was a huge problem
in the Nigerian economy. He observed that in other economies, it was easy to
access funds even at the consumer level where people could borrow money beyond
the limit on their credit cards. “As they keep spending
this money, the economy keeps getting stimulated,” he added.
Yusuf
lamented that for many years, the Nigerian banking system was wired to fund
imports, which he described as buying and selling, adding that as a result,
there had been a major disconnect between the banking and the real sectors of
the economy.
Data
obtained from the International Trade
Centre showed that the non-oil sector in other African countries was the
major source of revenue in 2017. South Africa, for instance, made $77.7bn from
non-oil exports. In contrast, Nigeria made $39bn from oil and only $1.6bn from
non-oil exports. Ghana generated about $7.64bn from non-oil exports, while
Cameroon, Kenya and Cote D’Ivoire made $2.1bn, $5bn and $9.1bn, respectively.
(Punch)
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