By Omodele Adigun
The Non-oil Export Stimulation Fund(NESF) was introduced by the Central Bank of Nigeria (CBN) to diversify the revenue base of the economy and to expedite the growth and development of the non-oil export sector.The facility will help redress the declining export financing and reposition the sector to increase its contribution to economic development.
Objectives
The objectives of the facility are to:
Impprove access of exporters to concessionary finance to expand and diverse the non-oil export basket;
Attract new investment and encourage re-investment in value-added non-oil export prduction and non-traditional exports;
Shore up non-oil export sector productivity and create more jobs;
Support export-oriented companies to upscale and expand their export operations as well as capable; and
Broaden the scope of export financing instruments.
Eligibility Criteria
Eligible Borrowers/Beneficiaries
Export-oriented enterprises that fuffills the under-listed conditions shall be eligible to participate under the NESF:
Duly incorporated in nigeria under the Companies and Allied Matters Act (CAMA).
Has verifiable export off-take contract(s).
Satisfactory credit reports from at least two Credit Bureaux.
Eligible transactions
The eligible transactions that qualify for funding under the NESF include:
Export of goods processed or manufactured in Nigeria;
Export of commodities and services, which are allowed under the law of Nigeria;
Imports of plant and machinery, spare parts and packaging materials, required for export-oriented production that can not be sourced locally;
Resuscitation, expansion, modernization and technology upgrade of non-oil export industries;
Export value chain support services such as transportation, warehousing and quality assurance infrastructure;
Working capital/stocking facility; and structured trade finance arrangements.
Participating financial institutions (DFIs)
Deposit money banks (DMBs) and development financial institutions (DFIs) are eligible to participate under the facility.
Lending limit
Term loans under the facility shall not exceed 70 per cent of verifiable total cost of the project subject toa maximum of N5 million.
Tenor
The NESF shall have a tenor of up to 10years and shall not exceed December 31, 2027.Working capital/stocking facility is one year with the option of roll-over once subject to the approval of the CBN.
Repayment of principal and interest is quarterly and in accordance with the agreed repayment schedule.
Interest rate
The facility shall be granted at anall-incluive interest rate of 9 per cent per annum.
How to apply
A paticipating financial institution shall submit application to CBN on behalf of its customer. And in the case of loan syndication, the lead bank shall submit application on behalf ofother banks.
Monitoring
Mnitoring and evaluation of projects funded under the facility shall include onsite and offsite verification and routine monitoring of projects by CBN and PFIs
Stakeholders
The roles and responsibilities of stakeholders as spelt out under the NESF guidlines are as follows:
CBN
The central bank is expected to provide loanable fund for the implementation of the scheme; issue guidelines and act as themanaging agent.The apex bank will also determine lending limits and applicable rates; provide regulatory and supervisory oversight; monitor and evaluate the projects; conduct impact assessment from time t time and sanction the PFIs for infractions.
PFIs
The participating financial institutions are epected to disburse the funds to eligible export companies at the approved rates and ensure timely disbursement of funds to approved projects.They are to ensure that due diligence is followed in the administration of credit facilities and also monitor as well as ensure proper utilisation of the funds. They also carry the responsibility of ensuring timely remittance of principal and interest payments due to the CBN.
Beneficiary
The beneficiary is expected to utilise the funds for the purpose for which it was granted and adhere strictly to the terms and conditions of the loan.
Above all, he is to comply with all relevant laws, regulations and operating guidelines of the facility; make the project site(s) and records accessible to CBN and PFIs for inspection.
The bnefiary is also expected to repay maturing loanobligations in line with the approved repayment schedule.
Money moves you need to make before turning 30
Turning 30 is a pretty significant milestone. If you’re coming up on 30, now’s a good time to take stock of your finances and get yourself on a responsible path. Here’s how.
•Complete your emergency fund: No matter your age, you need an emergency fund with enough cash to pay for three to six months’ worth of living expenses. This way, you’re covered if you find yourself out of work for a spell, or are faced with a sizable unplanned bill, like a major home or automobile repair. If your cash reserves aren’t up to snuff, now’s the time to start making changes that allow you to fill that emergency account.
You can approach this challenge in a couple of ways. First, try reviewing your budget and seeing if there are any current costs you can cut. If you have a gym membership you’re not really using, or a cable package you can easily downgrade, trimming those expenses could free up enough cash to get you to your goal. Of course, if you’re really behind on savings, you’ll probably need to make bigger changes, like cutting back on leisure or even trading a vehicle for public transportation. The key is to take a close look at your spending and see where there’s room to improve.
Another option for completing your emergency fund is to work a side hustle and bank the extra cash you bring in. Of the 44 million Americans who have an extra job, more than one-third bring home upward of $500 a month from that gig alone, so if cutting expenses doesn’t do the trick, or you’d rather not deprive yourself, working more is a viable option.
1•Start funding your nest egg: You may not feel compelled to save for retirement, what with it being so far away. But now that you’re staring down 30, it’s time to start contributing to a tax-advantaged savings account.
2. like an IRA or 401(k), immediately.
Workers under 50 can put up to $5,500 a year into the former and $18,000 a year into the latter, and the earlier you get started, the more opportunity you’ll give your money to grow.
Take a look at the following table, which highlights the importance of saving for the future sooner rather than later:
Thanks to the power of compounding, saving money when you’re younger can translate into a major gain when you’re older. For example, investing just $2,400 a year starting at age 30, for a total out-of-pocket contribution of $84,000, results in an ending balance of $413,000 when that money is invested at an average yearly 8% return. Not too shabby.
3. Devise a smart investment strategy
If your goal is to eventually retire in comfort, saving money is only part of the equation. You’ll also need to put your savings to work in order to grow that cash into the largest possible sum.
As a rule of thumb, savers over age 30 should have roughly 80% of their portfolio in stocks. In fact, in the above example, we saw how an 8% average annual return turned $84,000 into $413,000 over 35 years. Well, your best bet for achieving that sort of return is to go heavy on stocks.
Know nothing about investing? No problem. You don’t need to buy individual stocks to capitalize on the market’s returns. Rather, you can load up on ETFs, or exchange-traded funds, and avoid the risk that comes with investing in specific companies. You can also consult our introductory guide to buying stocks if you’re interested in taking a more customized approach to investing. Either way, take some time to figure out where to put your money so you’re more likely to meet your eventual goals.
4. Get out of debt
It’s natural to carry some amount of debt during your 20s, especially if you borrowed money for college. But as 30 approaches, you’d be wise to come up with a plan to knock out that debt so you’re not still carrying it into your 40s. This might mean using one of the above tactics (cutting expenses or working a side gig) to generate extra cash to pay down your loans.
But crucial as it is to eliminate student debt, it’s even more critical to wipe out costly credit card debt. The typical 30-year-old carries a balance of roughly $5,800, but if you’re paying 20% interest on that sum, you can easily get trapped in a cycle where you’re struggling to break free. A better bet is to take a look at your various debts, figure out which are costing you the most interest, and work your way downward.
5. Negotiate a higher salary
Though it pays to fight for more money at any age, by the time you hit 30, you’re more likely to have a solid leg to stand on than a younger worker with limited experience. Not only will boosting your income give you more flexibility to tackle the above-listed goals, but it’ll open the door to higher earnings in the future. That’s because when you do decide to move on to another job, you’ll likely be asked about your current salary, and the higher that number is, the more generous an offer you’re apt to receive.
Not sure how to negotiate a raise? Start by doing your research to see what folks in your industry are commanding. Better yet, narrow your search to similar jobs in your geographic region for a true apples-to-apples comparison. Next, schedule a meeting with your manager that offers ample time to state your case, and present your research along with a list of your greatest on-the-job wins. And be sure to go in with a “nothing to lose” attitude, because really, the worst that can happen is that your boss will say no.
As you gear up for your 30th birthday, take the time to evaluate your finances and make some decisions that will impact your long-term economic well-being. That way, by the time the big day arrives, you’ll have more than one reason to celebrate.