By Kingsley Ogunwa InvestAdvocate
Lagos (INVESTADVOCATE)-First Bank of Nigeria Limited in its bid to empower Small and Medium Scale Enterprises (SMEs) on Thursday hosted an awareness seminar on how to access foreign exchange (FX) to do businesses.
The event entitled “FX for SMEs: Eligibility and Exploitation” was attended by entrepreneurs covering all sectors of the Nigeria economy.
Oludolapo Adigun, group head, retail banking of FirstBank in her opening remark said the purpose of the forum was to provide SMEs with the information needed for eligibly accessing FX from the Central Bank of Nigeria (CBN).
“This is the role of FirstBank in empowering Nigerian SMEs,” she added.
According to her, this was part of the empowerment efforts by FirstBank, in empowering and boosting the activities of SMEs in the country.
Eloho Ogude, head, product development while presenting her paper on the forum said that the purpose of the FX provision by the CBN for SMEs is to ease pressure on the FX market.
According to her, the CBN has placed a $20,000 limit on a quarterly basis for the importation of only physical items with Form Q. At the forum, it was stated clearly that the 41 items of the CBN was not banned for importation; but only restricted.
She noted in terms of documentation for eligible entrepreneurs, the first step will be to open an account with FirstBank and such account would have been operated for a period of not less than six (6) months and must be funded.
Other documents needed include an application letter, a proforma invoice and foreign bank transfer details of the supplier.
She disclosed that the mode of payment is via telegraphic transfer at an exchange rate of N360 to dollar and there are no Bank charges on the part of FirstBank; but from the receiving bank abroad.
According to her, the benefits of the FX to SMEs include; boosting FX Liquidity in the country, reducing the volatility of the FX market & strengthen the naira, and improving business activities that will boost the Nigerian economy.
In her remark, Ibukun Awosika, chairman of FirstBank advised and encouraged entrepreneurs to take full advantage of the opportunities presented by the CBN’s FX window to SMEs.
“Policies about Forex for SMEs are moving targets that change at anytime which is why the SME should strive to be informed. However, our support for SMEs and new ideas is structured in a way that ensures that you as an SME are not buried in indebtedness. You can always count on us as we are fully committed to the growth of SMEs in our growing nation,” Awosika said.
FirstBank said eligible SMEs who are to benefit must have a staff strength of 11-199; however there can be waivers depending on the asset base of such an SME.
