The Central Bank of Nigeria (CBN) has commenced the implementation of the N500billion Non-Oil Exports Stimulation Facility (NESF). The NESF was introduced by the CBN to diversify the revenue base of the economy and to expedite the growth and development of the non-oil export sector.
The Facility is expected to help redress declining export financing and reposition the sector to increase its contribution to economic development. According to the structure of the facility, the loan will have a tenor of up to 10 years, with a moratorium period of one year, and will be disbursed at an all-inclusive interest rate of nine (9) percent per annum.
Also, loans under the Facility shall not exceed 70 per cent of verifiable total cost of the project, subject to a maximum of 5billion. The principal and annual interest will be repaid quarterly and in accordance with the repayment
schedule but not exceeding December 31st, 2027. However, working capital/stocking facility shall be for one year with the option of roll-over, subject to the approval of the CBN. All Deposit Money Banks (DMBs) and Development Financial Institutions (DFIs) are allowed to participate in the scheme as Participating Financial Institutions (PFIs).