Connect with us
Paramount
Advertisement
Ican
Advertisement
IZIKJON
Advertisement
Polaris bank
Advertisement
Binance
Advertisement
Esetech
Advertisement
Patricia
Advertisement
Fidelity ads
Advertisement
app

Business News

CBN unveils initiatives to boost commodity export

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.

Published

on

SELF-REGULATION FOR mfbS

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 is contained in the circular just published by the apex bank on Friday, 14th June, 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.

Funding: 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.

Why this matters: As was earlier reported by Nairametrics, top of the agenda for the apex bank is to halt the smuggling and dumping of banned products into Nigeria. Meanwhile, President Muhammadu Buhari had, in the earlier hours of Friday, directed the Central Bank to blacklist any firm, its owners, and top management caught smuggling or dumping any of the banned 43 items into the country.

What this new development means for the Nigerian economy is that 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.

Get latest insights on Nigeria’s exports

Analysis of the funding framework: 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.

The baseline is that the initiative will seek to bolster the productions and export of these items in the country. It is an attempt to protect local producers while discouraging the importations of items that can be locally produced in Nigeria.

Full report available here.

Charles Abuede is a graduate of Economics and Statistics from the University of Benin. He has worked as a business correspondent at Voidant Wireless Service (Pryde TV) and Entrepreneurs.ng. He is currently a Research Analyst at Nairametrics. You can reach him on [email protected] or @CharlesAbuede on LinkedIn and @AbuedeCharles on twitter.

Click to comment

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Advertisement




Advertisement

Nairametrics | Company Earnings