- Export trust fund, insurance tribunal underway
The Senate, yesterday, commenced major financial sector reforms aimed at strengthening Nigeria’s economic architecture, including proposals to raise the capital base of the Nigerian Export-Import Bank (NEXIM) to N1 trillion, establish an Export Development Trust Fund, and create a Special Tribunal for resolving insurance disputes.
These were among the key highlights of a public hearing organised by the Senate Committee on Banking, Insurance and Other Financial Institutions on two critical bills, the Nigerian Export-Import Bank (Amendment) Bill, 2025, and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025.
Chairman of the Committee, Senator Mukhail Abiru said the proposed legislations would modernise outdated laws and align Nigeria’s financial system with global standards.
“These bills represent a crucial step in shaping the future of Nigeria’s financial system.
“Effective lawmaking is never solitary, we must ensure these laws align with our national goals of economic transformation and stability,” Abiru said.
In a goodwill message delivered by the Senate Chief Whip, Senator Mohammed Tahir Monguno, on behalf of the Senate President, Godswill Akpabio, the upper chamber described the reforms as “a covenant with Nigeria’s economic future.”
Akpabio said the proposed measures were more than legislative exercises, they were instruments of national renewal.
“The NEXIM Bank is not just a bank; it is a bridge between our factories and the world. It must be empowered to lead, not just to lend,” he said, adding that the insurance sector “must evolve into a bulwark of trust and fairness in our economy.”
NEXIM Bank Managing Director, Abba Bello, backed the reforms, noting that the 1991 law establishing the bank was outdated.
He said the current ₦50 billion capital base, about $33 million, was “grossly inadequate” to support Nigeria’s export ambitions under the African Continental Free Trade Area (AfCFTA).
“We fully support raising the capital base to at least ₦500 billion, and ideally ₦1 trillion, to enable NEXIM to deliver on its mandate,” Bello said.
He also endorsed proposals to separate the Central Bank of Nigeria’s (CBN) oversight from NEXIM’s board leadership, establish an Export Development Fund, and promote continuity in governance.
Several stakeholders, including the Capital Market Academics of Nigeria, supported a ₦1 trillion minimum capital threshold, arguing that stronger capitalisation would make NEXIM more competitive with peers in India, China, and South Africa.
The Ministry of Finance Incorporated (MOFI) also endorsed the ₦1 trillion benchmark and clarified that the Federal Government’s shares in NEXIM should be held through MOFI, in line with its statutory mandate.
Commissioner for Insurance, Olusegun Ayo Omosehin, described the proposed Export Development Trust Fund as “a masterstroke,” saying it would unlock long-awaited financing for exporters to acquire raw materials, logistics, and capital goods.
The Nigeria Deposit Insurance Corporation (NDIC) also threw its weight behind the higher capital base and called for inclusion on NEXIM’s board to strengthen risk management.
Representatives from the construction and manufacturing sectors commended the proposed Export Promotion Fund but urged lawmakers to ensure that building materials, construction technology, and housing components were listed as eligible export items.
On the proposed Insurance Regulatory Commission Bill, Omosehin said the new legislation would reflect modern realities by empowering the regulator to supervise digital platforms, merge failing institutions, and enforce compliance directives.
A key provision is the creation of an Insurance Dispute Resolution Tribunal, which stakeholders described as a landmark reform that would boost investor and consumer confidence.
“The tribunal will provide quick, affordable, and professional redress to policyholders.
“It will restore trust in the system and encourage more Nigerians to embrace insurance,” Omosehin said.
The bill also proposes a restructured board, stricter compliance timelines, and new regulatory powers for actuarial practice, all measures stakeholders said were long overdue.
In his closing remarks, Senator Abiru commended stakeholders for their robust contributions and reaffirmed the Senate’s commitment to building stronger financial institutions.
“Our goal is to produce legislation that strengthens institutions, inspires confidence, and positions Nigeria’s financial system for global relevance,” he said.
If passed, the two bills, according to stakeholders, could usher in one of the most comprehensive overhauls of Nigeria’s financial regulatory framework in decades, expanding NEXIM’s capacity, creating a sustainable export funding structure, and enhancing trust in the insurance sector through specialised adjudication.
