Nigeria: Central bank to lend €2.2 billion to non-oil exporters
It is looking to diversify the country's revenues away from crude.Nigeria's central bank is setting aside 500 billion naira (€2.2 billion) for loans to non-oil exporters in a bid to diversify the country's revenues away from crude.
It said the loans will be issued by the Nigerian Export-Import Bank (NEXIM), Reuters reports.
The institution is looking to counter the effect of the slump in oil prices, as the country generates 70 per cent of its revenue and about 90 per cent of its export earnings from oil.
It said it expects to nearly double its non-oil revenues this year to counter the effect 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," the central bank said.
"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," it added.
Early this year, the government unveiled plans to borrow up to $5 billion in 2016 from various sources, including capital markets, to finance its deficit.