The Non-Oil Export Stimulation Facility (NESF) was introduced by the Central Bank of Nigeria (CBN) to diversify the revenue base of the economy and expedite the growth and development of the non-oil export sector.
The facility will help redress the declining export financing and reposition the sector to increase its contribution to economic development.
The fund comprises the short-tenured working capital for 12 months as well as the importation of plants & machinery for processing of exportable goods at an all-in-interest rate of 9% p.a. It is meant to improve export financing, increase access of exporters to low-interest credit and offer additional opportunities for them to upscale and expand their businesses in addition to improving their competitiveness.
Features
- Lending Limit: 70% of the total cost of the project or transaction subject to a limit of an N5billion.
- Single-digit interest rate (9% all-in, max).
- Single obligor limit of up to N5 billion.
- Fund available till 2027.
Benefits
- Funding is provided at a cheap cost.
- The longer tenor of the loan.
- Funding targeted specific Agricultural production.
Eligible transactions that shall qualify for funding under the NESF shall include:
- Export of goods processed or manufactured in Nigeria.
- Export of commodities and services, which are allowed under the laws of Nigeria.
- Imports of plant & machinery, spare parts, and packaging materials are required for export-oriented production that cannot be sourced locally.
- Resuscitation, expansion, modernization, and technology upgrade of non-oil export.
- Export value chain support services such as transportation, warehousing, and quality assurance infrastructure.
- Working capital/stocking facility; and
- Structured trade finance arrangements
Market
Eligible transactions that shall qualify for funding under the NESF shall include:
- Export of goods processed or manufactured in Nigeria.
- Export of commodities and services, which are allowed under the laws of Nigeria.
- Imports of plant & machinery, spare parts, and packaging materials are required for export-oriented production that cannot be sourced locally.
- Resuscitation, expansion, modernization, and technology upgrade of non-oil export.
- Export value chain support services such as transportation, warehousing, and quality assurance infrastructure.
- Working capital/stocking facility; and
- Structured trade finance arrangements
