How to Access CBN Non-Oil Export Stimulation Facility (NESF). Here are how you can benefit from N500 Billion Non Oil Export intervention fund. In fact, CBN launches the N500 billion Non oil Export Stimulation. Facility. You may check business banking www.nigerianbanker.com. In fact, other information here is that CBN sets rules for accessing N500b export stimulation cash. As a matter of fact, Central Bank of Nigeria (CBN) has started the implementation of the Non-Oil Export Stimulation Facility (NESF) that will enable non-oil exporters access N500 billion loan. In fact, this is CBN’s innovative approach to non-oil export financing. This is in a bid to spur non-oil exports.
Revenue Base Stimulation Facility:
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Furthermore, it’s generally believed that this fund will diversify revenue base of the economy. In other words, this will aid the development of the nation’s non-oil export sector. This is the policy issue disclosed in a document published on CBN website. As a matter of fact, yhis facility, as explained by the document, will help redress the declining export financing and thereby reposition the sector to increase its contribution to our national economic development.
Facility Objectives: How to Access CBN Non-Oil Export Stimulation Facility (NESF)
The objectives are anchored on the following points;
- To improve access of exporters to concessionary finance to expand and diversify the non-oil export baskets;
- To attract new investments and encourage re-investments in value-added non-oil exports production and non traditional exports;
- And thereby shore up non-oil export sector productivity and create more jobs;
- In this connection, support export-oriented companies to upscale and expand their export operations as well as capabilities;
Qualifications for the Loan:
For your company to qualify for this, it must be/possess
- A firm that is duly incorporated in Nigeria under the Companies and Allied Matters Act (CAMA) with verifiable export off-take contract(s).
- Satisfactory credit reports from at least two Credit Bureaux in line with the provisions of CBN Circular BSD/DIR/GEN/CIR/04/014 dated April 30, 2010.
- Furthermore, all applications shall be in compliance with CBN circulars BSD/DIR/GEN/LAB/07/015 and BSD/DIR/GENLAB/07/034 on “Prohibition of Loan Defaulters from Further Access to Credit Facilities in the Nigerian banking System”. And “Guidelines for Processing Requests from DMBs to Extend New/Additional Credit Facilities to Loan Defaulters and AMCON Obligors” dated June 30, 2014 and October 10, 2014, respectively.
Acceptable Transactions: How to Access CBN Non-Oil Export Stimulation Facility (NESF)
Furthermore, the fact is that not all types of transact merits this facility. The transactions that qualify are;
- Export of goods processed or manufactured in Nigeria;
- Export of commodities and services, which are allowed under the laws of Nigeria and do not violate the principles of non-interest banking and finance;
- Imports of plant & machinery, spare parts and packaging materials, required for export-oriented production that cannot be sourced locally;
- In addition, Resuscitation, expansion, modernization and technology upgrade of non-oil export industries;
- Export value chain support services such as transportation, warehousing and quality assurance infrastructure;
- Working capital/stocking facility;
Participating Financial Institutions (PFIs):
- Non-Interest Banks (NIBs).
- Non-Interest Development Finance Institutions (NI-DFIs).
Features of the NESF:
Financing Limit – Term financings under the Facility shall not exceed 70% of verifiable total cost of the project subject to a maximum of ₦5,000,000,000.00.
Tenor – The NESF shall have a tenor of up to 10 years and shall not exceed the 31st December, 2027.
Working capital/stocking facility shall be for one year. Where applicable, the facility can be rolled-over twice on a reducing balance basis of 33.3% of the original amount.
Repayment – Repayments of principal and return shall be quarterly and in accordance with the agreed repayment schedule.
Moratorium – Moratorium shall be project-specific and shall not exceed two (2) years.
In case of construction, additional moratorium of up to one (1) year may be allowed, subject to approval by the CBN.
Rates of Return – The Facility shall be granted at an all-inclusive rate of return of 9% per annum.
- A PFI shall submit application to CBN on behalf of its customer in the prescribed format.
- In the case of financing syndication, the lead bank shall submit application on behalf of other banks. All correspondence with respect to the application shall be with the lead bank.
- Each request for a facility is to be accompanied by the following documents:
a) Written request from the project promoter to a PFI seeking financing under the NESF.
b) Completed application form.
c) Furthermore, Certified true copies of documents of business incorporation.
d) Three (3) years tax clearance certificate.
e) Audited statement of accounts for the last three (3) years (where applicable) or the most recent management account for companies less than three (3) years in operations.
f) In addition, Feasibility study/ business plan of the project.
g) Relevant permits/ licenses/ approvals (where applicable).
h) Verifiable export orders/ contracts or other export agreement and arrangements/ commitments.
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What we offer you in this scheme: How to Access CBN Non-Oil Export Stimulation Facility (NESF)
In summary, it’s reasonable and economical for you to ask for the services we offer you for this facility programme. This is because we have the capacity to develop a bankable business plan for you. In addition, we register your business name or company with CAC where applicable.
COMPLETE FULL MARKS CONSULTANTS (CFMC) LIMITED:
This is a firm of chartered accountants, and management consultants. In fact, we are trained for business cancelling. In addition, as accredited consultants with CAC, SMEDAN and other government agencies, we handle your statutory licensing and registration.
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Founder/Managing Partner of Complete Full Marks Consultants Ltd. An Economist turned Chattered Accountant and Tax Practitioner with over 37 years of industrial experience.