Central Bank of Nigeria (CBN) has said that the introduction of Non-oil Exports Stimulation Facility (NESF) was designed to broaden the scope of export financing instruments.
The apex bank said the facility was introduce to diversify the revenue base of the economy and to expedite the growth and development of the non oil export sector.
The guideline on NESF released by the CBN stated that the facility will help redress the declining export financing and reposition thesector to increase its contribution to economic development.
Apart from attracting new investment and encourage reinvestment in value added, non oil exports production and non traditional exports, NESF would help to improve access of exporters to concessionary finance to expand and diversify the non oil basket.
According to the guidelines, eligible borrowers must be fully incorporated in Nigeria under the Companies and Allied Matter Act (CAMA) and has satisfactory credit reports from at least two licensed indigenous credit Bureau in line with the provision of the CBN circular.
Naming deposit money bank, development finance institutions as participating financial institution, the apex bank said the terms loan under the facility shall exceed 70 per cent of verifiable total cost of the project subject to maximum of N5,000,000,000.
The NESF according the CBN have tenor up to 10 years and shall not exceed the December 31, 2027 while working capital / stocking facility shall be for one year with the option of too over once subject to the approval of the CBN.
The guideline said that the event of default loan repayment of principal and interest by the borrower, the PFI shall have the right to charge it’s prevailing interest rate on the amount default.
It said failure of PFI to disburse funds to the borrower within the period agreed in the loan agreement shall attract a penalty charge of the maximum lending rate of the PFI for a period that fund were not disbursed.
Explaining further, the guideline said non rendition or return of the rendition of false returns shall attract the penalty stipulated by section 60 of the banks and other financial institutions Act (BOFIA).
