The Central Bank of Nigeria, CBN, has said it is marking down N500 billion (about $2.5 billion) for loans to non-oil export following the nation’s dwindling oil revenue.
The apex bank said it “will invest in a N500 billion debenture to be issued by Nigerian Export-Import Bank (NEXIM)” as part of a bid to diversify the country’s revenues away from crude. It expects to nearly double its non-oil revenues this year to counter the effects of lost crude income.
“The facility is essentially designed to redress the declining export credit and reposition the sector to increase its contribution to revenue generation and economic development.
“It will improve export financing, increase access of exporters to low interest credit and offer additional opportunities for them to upscale and expand their businesses,” the apex bank explained.
The bank said loans for up to three years would be granted at a maximum all-in interest rate of 7.5 per cent a year. Loans of more than three years will be granted at a maximum rate of nine percent a year.