GTBank strengthens non-oil export trade value chains

Guaranty Trust Bank (GTBank) has trained operators in the Non-Oil business value chains, in order to explore forex revenue potentials in the sector.
Speaking at the workshop held recently in Lagos, SriramVenrateswaran, an exporter/CEO, Fullmark Commodities Limited, suggested that exporters should be allowed to sell their export proceeds to importers to fund their import business.
But in a swift response by the CBN representative, Mr. Vincent opined that exporters can write to CBN through their banks for such request for approval, adding that the apex lender looking into ways of giving more flexibility to the policy on utilization of export proceeds.
Reacting to an earlier appeal by an exporter for the federal government not to restore the export expansion grant (EEG), Vincent said there was pressure on the federal government to restore the EEG. According to him, although the CBN was against it because it was being abused, the central bank does not have the powers to prosecute.Vincent said the federal government had disclosed plan to reintroduce the EEG. He assured the exporters that the CBN was committed to supporting their businesses.
Another exporter in attendance, Ram Hemnani representing Primlaks suggested that rather than re-introducing the EEG, such funds should be used to fix infrastructure as that will benefit more exporters rather than the few the EEG will benefit. He added that both post-shipment and pre-shipment incentives can be introduced by the CBN. Also, he believes that there won’t be need for EEG if the infrastructures are there. Hemnani also suggested that Nigeria should promote her commodities/products in the international market and media so as to create demand.
In reaction, Vincent said: “Last year at the beginning of this crisis, the Governor of the CBN, Mr. Godwin Emefiele had a meeting with the exporters in Lagos. At the meeting, we discussed issues bothering on remittances, volatility in exchange rate and other issues. Sadly, there was no sincerity of purpose amongst the people that came for that meeting. But today we can see some level of sincerity and discourse.”
He assured that feedback from the forum will be deliberated upon. He also implored exporters to ensure they repatriate their export proceeds.
On the Export Stimulation Fund, AbiolaAderonmu representing FTN Cocoa Processors PLC enquired if/when it will approve. Vincent assured that the funds will be disbursed to the applicants once the requirements are met. He further stated that measures had been put in place to support businesses in the country, stimulate growth and grow the economy. He also called on importers to ensure that the country benefits from what they are importing.
He said: “We (CBN) are going to do more to stabilise the value of the naira so that everybody is happy. The present government is trying to ensure that we consume what we produce locally.”
One of the keynote speakers, Babatunde Faleke representing Nigerian Export Promotion Council (NEPC) also advised exporters on the need to add value to their produce. This, he said, will enable them get more value for their exports. He added that the Council is committed to assisting exporters to move from raw materials based export to finished goods export.
He mentioned that the Council is ready to partner with exporters in this regard to help grow their business and in turn grow the economy, as huge potentials exist in different segment of the non-oil export business.