NEXIM Bank Tasks SMEs On N550bn Export Funds

BY COBHAM NSA, ABUJA – The Nigerian Export-Import (NEXIM) Bank has challenged export-oriented Small and Medium Entrepreneurs (SMEs) in the South East and Delta State to access the N500 billion Export Stimulation Facility (ESF) and the N50 billion Export Development Fund (EDF) to grow their businesses and create wealth in the country.

Managing Director and Chief Executive Officer of the Bank, Mr Abba Bello says drawing financial support from these facilities managed by the Bank will also aid in generating employment; creating more jobs and contributing to Nigeria’s foreign exchange revenue earnings.

Mr Bello stated this at a one-day seminar on ‘Leveraging NEXIM Bank Facilities To Unleash Your Export Potential’ organised by the Bank and the SME Centre, Enugu at Oaklands Centre, Enugu State.

According to him, the facilities, given to NEXIM Bank in December 2017, are available at a maximum of nine per cent interest rate, adding that the funds will tackle the declining export credit to SMEs and reposition the non-oil sector for increased contribution to Nigeria’s revenue generation and economic development.

The NEXIM Chief is upbeat that improved export financing for non-oil exporters remains crucial as it will enable them upscale and expand their businesses and improve their competiveness on the global stage.

Represented by Head of the Enugu Regional Office, Mr Chinedu Moghalu, the Managing Director lauded the Central Bank of Nigeria (CBN) for making the funds available at a time NEXIM has decentralized its operations to all geo-political zones for easier accessibility and maximum impact of its products and services.

He said; “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.”

Mr Bello, who lauded the stakeholders and seminar participants, pledged that NEXIM will, in line with its mandate, work tirelessly to fully achieve the schemes’ objectives, even as he expressed the bank’s resolve to provide necessary advice, additional information or clarifications as may be required by potential beneficiaries.

In his remarks, the Enugu State Governor, Ifeanyi Ugwuanyi, represented by his Special Assistant on SME Development, Mr Anayo Agu expressed happiness that the programme is coming at the right time when the economic diversification has become germane for sustainable development and growth in the country.

“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”, he said. 

In his speech, the Enugu Regional Office Head, Mr Moghalu said, “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.”

He urged eligible export-oriented companies in the region with permissible transactions under the funding schemes to participate by submitting proposals for consideration through the financial institutions of their choice or directly to NEXIM Bank.

Moghalu, who stated that NEXIM Bank, as Nigeria’s sole export credit agency, remains the only window through which the government can provide export financing for non-oil products and services, praised the Nigerian Export Promotion Council (NEPC), the Manufacturers’ Association of Nigeria (MAN), the commodity associations and other organised private sector for their relentless technical support and collaboration as well as commitment to engage the government and private sector in diversifying the economy, creating jobs, boosting industrial production and exports in the country.

Participants at the event included South-east government officials; representatives from various chambers of commerce and industries; SME professionals in the banking sector; as well as the media.

As reflected in the CBN guidelines, the ESF’s objectives are to: i) Improve access of exporters to concessionary finance to expand and diversify the non-oil export baskets; ii) Attract new investments and encourage re-investments in value-added non-oil exports production and non-traditional exports; iii) Shore up non-oil export sector productivity and create more jobs; iv) Support export oriented companies to upscale and expand their export operations as well as capabilities; v) Diversify and increase the level of contribution of non-oil exports revenue towards sustainable economic development; and vi) Broaden the scope of export financing instruments.

Accordingly, transactions 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 eligible businesses 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.

Potential applicants 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.

The N50 billion EDF also managed by NEXIM will be disbursed in partnership with State governments just as the Bank has earmarked at least N1 billion for each State under the State Export Development Programme (SEDP) component aimed to catalyse and incentivize export investment to promote diversification and industrialization.

Under the scheme, NEXIM also has a programme for women/youth development to support industries involved in apparel/garmenting, cashew, and shea among others.