Nigeria introduces two new financing programmes to boost non-oil exports


Thursday, January 21, 2016 8:56 AM / FBNQuest Research

The latest monthly Economic Report from the CBN puts non-oil exports provisionally at US$325m in October, indicating an increase of 190% from the preceding month but a 46% decline on a y/y basis. The largest proceeds came from minerals, which stood at US$126m. Although earnings from non-oil exports increased considerably from September, the value remains very low at approximately 1% of GDP; as such there is still significant room for improvement


At a conference held this week, the CBN governor, Godwin Emefiele, blamed the low level of loans granted to non-oil exporters for the sector’s underperformance. According to the CBN, total credit to non-oil exporters is estimated at 0.6% of domestic credit.   




To encourage business expansion within this sector, the FGN has introduced two new financing programmes, the Export Rediscounting and Refinancing Facility (RRF) and the Non-oil Export Stimulation Facility (ESF). We gather that these programmes will serve as intervention funds worth N300bn (US$1.5bn). They were designed in conjunction with the Nigerian Export Import Bank.

All figures cited above are calculated on a customs basis. On a balance-of-payments basis according to the CBN’s quarterly Statistical Bulletin series, non-oil export earnings stood at US$547m in Q3 2015. This figure is divided between electricity and other exports. Nigeria currently supplies power to Benin Republic and Niger on the basis of signed economic treaties. We estimate annual proceeds from this source at between N15bn (US$75m) and N20bn.




Beyond this latest CBN intervention, other measures have to be put in place to encourage DMBs to lend more to this sector.


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