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Banks to support export trading with N500bn yearly

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ECONOMY: The road ahead is rough, really rough, Emefiele tells Senate

The Central Bank of Nigeria (CBN) and the bankers’ committee have agreed that banks would give N500 billion in loans to export-oriented enterprises that generate annual profits.

The CBN Governor, Godwin Emefiele, stated this at a two-day bankers’ committee retreat held in Lagos at the weekend.

Emefiele said the banks support would complement the CBN’s move to boost Nigeria’s forex earnings.

He said: “We are saying we draw the line and that every year, the banks put together are committed that they will grant export loan facilities to the tune of at least N500 billion which the Central Bank will graduate among the banks.

“So you can generate export proceeds in an exponential way. That will eventually be high that the export proceeds from the non-oil sources will be high to the point where after some time it relieves the CBN of the pressure that goes to finding dollars to meet the import needs of both the banks and their customers.”

READ ALSO: Emefiele laments effects of forex scarcity on Nigeria’s economy

The committee also noted the progress recorded by the country in non-oil export this year.

The CBN governor revealed that rebates were given to exporters for proceeds or repatriation of about $622 million between February and March.

He added: “During the second quarter the export proceeds repatriation that earned rebate was about $622 million and the third quarter we saw almost about $850 million of export proceeds that earned rebate.

“Let us not forget the rebate is only meant for processed goods. So by the time we add both processed and unprocessed goods like cocoa and cashew to the processed goods, we actually ran into almost $1 billion during the third quarter and we are beginning to think that we should be able to continue to ramp up. We are looking hopefully for the fourth quarter, we hope that we should be able to hit over a billion dollars in export proceeds and repatriations that will qualify for a rebate.”

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