EMEKA OKOROANYAWU
The Central Bank of Nigeria (CBN), has unveiled the Export Facilitation Initiatives (EFI) targeted at boosting commodity exports in the non-oil sector of the Nigerian economy.
This was contained in the circular just published by the apex bank last week in line with the approval by the bankers’ committee at its 343rd meeting, for the commencement of the EFI to complement the government’s efforts to foster growth in the non-oil sector of the economy.
Under the initiative, as highlighted by the Central Bank of Nigeria, the focal commodities for value chain development would be cocoa, cashew, palm oil, Shea and sesame seed.
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The apex bank stressed that the commodities are to be funded under the approved guidelines of the Agri-Business small and Medium Enterprises Investment Scheme (AGSMEIS), The Non-oil Export Stimulation Facility (NESF), and the Real sector Support Facility-Differentiated Cash reserves requirement (RSSF-DCRR) in line with the approved limits in the EIF Funding Framework.
As a result of this initiative, local manufacturers will be encouraged to produce more of these commodities so as to enhance foreign exchange earnings. Also, it is a move to protect the domestic health and safety of the nation’s economy, rescuing it from becoming a dumping ground for imports.
The funding for the initiative shall have a 9% interest rate cut across all categories in cocoa, oil-palm, cashew, Shea and sesame seeds productions and exports. The tenors vary for all categories of facility A and B while the funding shall come from AGSMEIS, NESF, and DCCR.
