Circular to all Banks on the Commencement of the Export Facilitation Initiative (EFI)

CENTRAL BANK OF NIGERIA Financial Policy and Regulation Department Central Business District P.M.B. 0187 Garki, Abuja.

Tel: 09-46237401 E-mail:fprd@cbn.gov.ng June 13, 2019 Ref: FPR/DIR/GEN/CIR/07/030 CIRCULAR TO ALL BANKS ON THE COMMENCEMENT OF THE EXPORT FACILITATION INITIATIVE (EFI) The Bankers' Committee at its 343ad Meeting held on April 4, 2019 approved the commencement of the Export Facilitation Initiative (EFI) to compliment government efforts to engender growth in the non-oil sector of the economy as well as enhance foreign earnings and employment generation. Under the initiative, the focal commodities for value chain development would be cashew, cocoa, palm oil, sesame seed and shea. The commodities are to be funded under the approved guidelines of AGSMEIS, NESF and RSSF-DCRR in line with the approved limits in the Export Facilitation Initiative Funding Framework (EFIFF). The detailed operational requirements for the initiative would be released in due course.

All enquiries in respect of the EFI and EFIFF should be directed to the Director, Development Finance Department, Central Bank of Nigeria, Abuja or email developmentfinancedept@cbn.gov.ng Copies of the EFIFF, NESF and AGMEIS guidelines may also be assessed from the CBN website: - www. cbn.gov.ng Yours faithfully, KEVIN N. AMUGO DIRECTOR, FINANCIAL POLICY AND REGULATION DEPARTMENT

	COCOA	Small Holder Farmers (Under Clusters Via Aggregation)
	Funding Terms	Large and Mid- Sized Players (Facility A) for Land Acquisition and Cultivation	Large and Mid- Sized Players (Facility B) for Milling and Refining capacity
Tenor	7-10 Years	5 - 7 years	5 - 7 years
Interest Rate	9%	9%	9%
Moratorium / Equity Contribution	3 years moratorium on principal Nil Equity	1 year moratorium on principal 10 - 20% Equity	2years moratorium on principal Nil Equity
Funding Source	AGSMEIS	NESF & DCCR	AGSMEIS	1

	OIL PALM	Small Holder Farmers (Under Clusters Via Aggregation)
Funding Terms	Large and Mid- Sized Players (Facility A) for Land Acquisition and Cultivation	Large and Mid- Sized Players (Facility B) for Milling and Refining capacity
Tenor	7-10 Years	5 - 7 years	5 - 7 years
Interest Rate	9%	9%	9%
Moratorium / Equity Contribution	3 years moratorium on principal Nil Equity	1 year moratorium on principal 10 - 20% Equity	2years moratorium on principal Nil Equity
Funding Source	AGSMEIS	NESF & DCCR	AGSMEIS	2

	CASHEW	Small Holder Farmers (Under Clusters Via Aggregation)
Funding Terms	Large and Mid- Sized Players (Facility A) for Land Acquisition and Cultivation	Large and Mid- Sized Players (Facility B) for Milling and Refining capacity
Tenor	I year
120 Days Cleanup Cycle	I year
	120 Days Cleanup Cycle	I year
		120 Days Cleanup Cycle
Interest Rate	9%	9%	9%
Moratorium / Equity Contribution	120 Days Clean Up Cycle	120 Days Clean Up Cycle 10 - 20% Equity	120 Days Clean Up Cycle Nil Equity
Funding Source	AGSMEIS	NESF & DCCR	AGSMEIS	3

	SHEA	Small Holder Farmers (Under Clusters Via Aggregation)
Funding Terms	Large and Mid- Sized Players (Facility A) for Land Acquisition and Cultivation	Large and Mid- Sized Players (Facility B) for Milling and Refining capacity
Tenor	I year
with Option of Rollover	I year
	with Option of Rollover	I year
		with Option of Rollover
Interest Rate	9%	9%	9%
Moratorium / Equity Contribution	I year with option of rollover	I year with option of rollover 10 - 20% Equity	I year with option of rollover Nil Equity
Funding Source	AGSMEIS	NESF & DCCR	AGSMEIS	4

	SESAME SEEDS	Small Holder Farmers (Under Clusters Via Aggregation)
Funding Terms	Large and Mid- Sized Players (Facility A) for Land Acquisition and Cultivation	Large and Mid- Sized Players (Facility B) for Milling and Refining capacity
Tenor	I year Warehousing
4 years Asset Acquisition	I year Warehousing
	4 years Asset Acquisition	I year Warehousing
		4 years Asset Acquisition
Interest Rate	9%	9%	9%
Moratorium / Equity Contribution	1 year Moratorium on Principal on Asset Acquisition and Nil Equity	1 year Moratorium on Principal on Asset Acquisition and Nil Equity 10 - 20% Equity	1 year Moratorium on Principal on Asset Acquisition and Nil Equity Nil Equity
Funding Source	AGSMEIS	NESF & DCCR	AGSMEIS	5