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FG inaugurates mentorship programme to enhance non-oil exports

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Abuja, Nov. 1, 2023: The Federal Government has inaugurated an Export Mentorship Programme (EMP) to boost the non-oil export sector of the country.

The Executive Director of NEPC, Nonye Ayeni, while inaugurating the programme in Abuja, said the development and promotion of non-oil exports was one of NEPC’s key mandates.

Ayeni said the programme would attach budding exporters to manufacturing exporters for an agreed period for the purpose of learning the rudiments of non-oil export business.

She that EMP was borne out of the need to enhance the performance of Nigeria’s non-oil export sector.

She said: ‘through provision of veritable platform for learning, unlearning, and relearning of new exporters from the established ones in a practical manner.

”NEPC has over the years worked proactively to fulfill her mandate through the execution of numerous programmes and activities.

”All with the main aim of diversifying the nation’s economy away from reliance on crude oil as the mono product of economy.”

Ayeni said the inauguration of EMP was a proactive step at ensuring that skill gaps and other obstacles affecting export performance were reduced to the barest minimum.

She said EMP was unique because it adopted practical hands-on approach, whereby willing mentees were attached to performing exporters for tutelage on the entire process of non-oil export business.

”The Council’s decision to adopt EMP strategy in raising a new crop of skilled exporters is based on global statistics.

”It shows that less than 10 per cent of beginner exporters can successfully transit from prospective to performing exporters within their first three – five years of establishment.

”The reasons for failure to survive the early stage of business formation are largely attributed to inability of the beginners to master the complex terrain of export business,” Ayeni said.

The executive director commended the mentors, saying their efforts would enable the trainees become contributors to food security index in Nigeria.

She sought for more volunteers in raising a crop of indigenous exporters to create jobs and boost foreign earnings for the nation.

Ayeni also called on other stakeholders to support the exporters, while assuring of NEPC’s continued commitment to the diversification of Nigeria’s export trade.

 ”We are open to ideas on how to continually improve the EMP we have started. Feel free to reach out as we are partners in progress on this journey,” she said.

agricultureinnigeria

Nigeria opts for single-digit interest loan to spur agriculture, manufacturing

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Nigeria
has taken a bold step to spur manufacturing and agricultural sectors of
the economy as commercial bank have been directed to give single-digit
interest
rate loans to investors in the sectors.
The
Central Bank of Nigeria (CBN) and the Bankers’ Committee agreed to
offer single-digit interest rate loans to operators in the sectors from
commercial banks’
cash reserve requirement (CRR) with the apex bank.
Data
obtained from the CBN website put the total banking industry reserves
with the central bank as at June 2018 at $13.4 billion.
The
central bank explained that instead of out rightly lowering interest
rate, it opted for a system whereby the single-digit interest funds
would be implemented
to long-term credit at nine per cent and a minimum tenor of seven
years.
This was revealed at the end of a Bankers’ Committee meeting that took place in Lagos on August 16, 2018.
CBN
Governor, Mr. Godwin Emefiele, had at the last Monetary Policy
Committee (MPC) meeting in Abuja last month, said the central bank was
working on the modalities
for the scheme.
The
 Director of Banking Supervision, Mr. Ahmad Abdullahi, said the idea is to enhance job creation.
“Although
agriculture and manufacturing are the initial sectors that are being
considered, a bank can apply if there is a job creating sector that bank
is operating
in, it may be considered.
“The
idea is that we can refund the CRR of a bank that has engaged in
lending in a new project or an existing one in the agriculture or
manufacturing sector
as a way of utilising the CRR.
“So
anytime a bank lends to manufacturing or agric sector operator, at the
rate the CBN has prescribed, it would have its CRR refunded up to the
amount it has
lent. The guidelines are coming up any moment from now.
“It
is in two folds, there would be commercial papers (CPs) and corporate
bonds. On the other hand, there would be direct lending by the banks to
SMEs that are
in those sectors.”
“Market
expectation was that because of the 17 months of inflation coming down,
there would be a reduction in monetary policy rate (MPR). The concern
MPC has
regarding capital reversals and exchange rate stability that was why we
see the MPC holding interest rate.”
He also expressed satisfaction with the performance of the economy.
 “The outlook for the economy in 2018 is much better than 2017. We have seen stability in the exchange rate being
sustained, gross domestic product (GDP) growth higher than 2017.
“And
although there are capital reversals in our capital market, but the
fact is that capital outflow in the Nigerian economy is far less
compared to many emerging
economies, which is a sign that there is high confidence in the Nigeria
economy.”
Also,
the Chief Executive Officer of Guaranty Trust Bank Plc, Mr. Segun
Agbaje, said the initiative was expected to create jobs and enhance
economic growth.
Agbaje
said, “The CBN has been very gracious and said on these sectors, if you
have companies that are doing new capital expenditures and expansions,
you (the
banks) would be able to lend using some of your CRR at nine per cent.
“These are not short-term loans; they are long term loans of seven-year loans and two year moratorium on principal.”
He
applauded the initiative saying, “It would probably be the first time
in the history of this country where manufacturers would be able to take
fixed interest
rate loans for seven years, which means they would be able to plan.
“The
volatility that they fear for all kinds of risks would be taken out and
I think these are very laudable steps in improving and growing the
economy.”
He
added, “So, it would allow people to do capital expenditure, which is
more long-term. It would give people single-digit interest rate loans,
where bonds could
go as far as 10 years.”
Also,
the Executive Director, Finance, First City Monument Bank, Mrs. Yemisi
Edun, said, “The CRR that is taken from banks would be positively
deployed to grow
the real sector as well as the agriculture sector.

Edun
added, “This is very positive for the economy and also positive for
banks because we would be able to access these funds and earn on it. And
because it
would be coming at single digit rate, it would be positive for the
economy.”
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An Overview of major trends in Free Zone Development.

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The problem with most  human endeavour is the
problem of moving with the tide and effect changes when it is needed.
There have been profound changes in the Free Zone
concept and development approach, since the first modern zone was established
in Ireland in 1959, and even more fundamental changes are foreseen over the
next decade with full implementation of the WTO Agreement.
This can be consented to by the expansion in the
types of Zones in both developing and industrialised countries. Countries are
now facilitating the development of Zones to meet specific objectives and
target markets. Traditional Export Processing Zones (EPZs) are increasingly being augmented and most times supplanted by new, more flexible arrangements. Hybrid EPZs
are the preferred model in most Central and East European Countries and
increasingly among many Latin American countries. Commercial Free Zones have
been the traditional development norm among most Middle East and North African
Countries, but this is a recent innovation in Asia, where Zone development has
emphasized export manufacturing.
Free Zones were traditionally developed as isolated
enclaves both in terms of their underlying policy framework, and in terms of
geographic location. Access to a generous set of incentives and privileges were
rigidly controlled. Qualifying firms typically had to be 80-100 percent export
oriented, for firms engaged in manufacturing activities.
Zones were physically located in relatively remote
areas and near transport hubs, viewed primarily as “growth poles” for regional
development. Zones were exclusively developed and managed by government bodies.
The above rigid approach has changed fundamentally
over the past two decades and it will continue to change, one of the major
changes in thinking has been to permit Zones to develop country wide and not
restrict them to growth poles or other designated areas. This may be in
response to the growing desire of private Zones developers and the increasing
number of private property development groups.