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Tag: NEXIM

  • Senate plans to raise NEXIM capital base to N1trillion

    Senate plans to raise NEXIM capital base to N1trillion

    • 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    Chairman of the Committee, Senator Mukhail Abiru said the proposed legislations would modernise outdated laws and align Nigeria’s financial system with global standards.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.”

    Read Also: Senate urges Edun to address investor fears over new capital gains tax

    NEXIM Bank Managing Director, Abba Bello, backed the reforms, noting that the 1991 law establishing the bank was outdated.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.

  • NEXIM launches Export Development Funds, marks IWD

    NEXIM launches Export Development Funds, marks IWD

    The Nigerian Export Import Bank (NEXIM) has marked the 2025 International Women’s Day with the launch of Women In Export Development Funds (WEDF).

    This was as former Minister of Finance, Mrs Kemi Adeosun, former Chairwoman of Access Bank, Dere Awosika and the Executive Director, Business Development, NEXIM Bank, Stella Okotete, urged women to be resilient and break systemic barriers that have held them down for too long, adding that self-development will put them at vantage positions to do exploits in business and other chosen careers. 

    According to the Managing Director, Mr Abba Bello, the initiative is meant to deepen the bank’s interventions towards increasing the participation of women in the non-oil export sector. 

    He extolled the virtues of women, noting that their importance and great contributions are globally recognized.

    Abba stated that this year’s theme: ‘’For All Women and Girls: Rights. Equality. Empowerment’’ #”Accelerate Action” is a call towards empowering women and addressing gender disparities with focus on strategies, resources, and activities that positively impact women’s advancement.

    “Today’s occasion is in commemoration of this auspicious Month and a display of NEXIM Bank’s commitment to advancing women’s empowerment and emphasizing on women’s achievements, challenges, and also to foster dialogue, share insights and promote actional strategies women empowerment.

    “Women and girls are at the heart of national development. When we empower women, we empower families, communities, and entire economies.”

    According to Abba, Nigeria, with its vast human and material resources, can only achieve sustainable development when women are included in all aspects of economic growth, particularly in financial empowerment and entrepreneurship.

    “In recognition of this and in fulfilment of its mandate, NEXIM Bank, has developed a number of products specifically targeting women, which includes the Women and Youth Export Fund (WAYEF), The Small and Medium Enterprises Export Fund (SMEEF) and the Women in Oil and Gas Managed Funds.  

    “These products and services impact positively on women playing in the SME’s and the Non-Oil Export Value chain providing them with affordable credit financing, under acceptable terms and conditions. 

    On her part, former Minister of Finance, Kemi Adeosun, called on President Bola Tinubu to name a National Export Adviser, noting that there are more opportunities in export than in import.

    She noted that Nigeria’s export-to-GDP ratio stood at 9.2 per cent, compared to other African countries, adding that Nigeria did not need to reduce its imports into the country, but rather increase its exports. 

    “I urge our President, to name a National Export Adviser. We need a figurehead that will drive reforms and break down all barriers to exports so that our world-class goods can get to the global market.

    “There’s been a lot of narrative around Nigeria. The narrative used to be Nigeria imports too much, but that is not true. The statistics do not support that at all. The statistics do say that Nigeria exports too little. So, if you look at Nigeria’s export-to-GDP ratio, it is 9.2 per cent. That was the last statistic, that was before the rebasement.

    “So, when the rebasement seeds are in, that signal will go down. Nigeria’s export-to-GDP, please remember these numbers, 9.2 per cent, Ghana 34 per cent, South Africa 32.8 per cent, Senegal 23 per cent. So, what we are saying is, not so much efforts on reducing our imports, we need to focus on increasing our exports,” she said.

    Adeosun also noted that while it took weeks to register as an exporter in Nigeria, it took only 48 hours to register in South Africa, adding that Nigeria must be intentional about export opportunities.

    “By our last recording, there are about four steps to register as an exporter in Nigeria. Takes an average of two to three weeks, in South Africa, it takes 48 hours. 

    “So, if it takes long for me to go through various clearances, the chances are I will give up. So, we need to be intentional about the opportunity. And the opportunity for the ladies is in exports.

    “It is not in imports, it’s in exports. Your products are world-class. Your products can compete anywhere in the world. And if you look at the trajectory, Nollywood is now growing, our music is growing. 

    What should follow, our fashion, our arts, our crafts, our snacks, our foods, that’s the next wave,” she stated.

    Managing Director and Chief Executive Officer of the NEXIM Bank, Abubakar Bello, said the occasion was to display the Bank’s commitment to advancing women’s empowerment and emphasising women’s achievements, challenges, and to foster dialogue, share insights and promote actional strategies women empowerment.

    He noted that the bank had developed several products targeting women, which including the Women and Youth Export Fund, The Small and Medium Enterprises Export Fund and the Women in Oil and Gas Managed Funds, while also announcing the launch of The Women In Export Development Fund.

    “Women and girls are at the heart of national development. When we empower women, we empower families, communities, and entire economies.

    Nigeria, with its vast human and material resources, can only achieve sustainable development when women are included in all aspects of economic growth, particularly in financial empowerment and entrepreneurship.

    “In recognition of this and fulfilment of its mandate, NEXIM Bank has developed several products specifically targeting women, which include the Women and Youth Export Fund, The Small and Medium Enterprises Export Fund and the Women in Oil and Gas Managed Funds.

    “These products and services impact positively on women playing in the SME’s and the Non-Oil Export Value chain providing them with affordable credit financing, under acceptable terms and conditions. 

    “As we mark this occasion, we commit to further deepen our interventions to increase the participation of women in the non-oil export sector. It is in this regard that we present another flagship product: ‘The Women In Export Development Fund”, he said.

    Executive Director, Corporate Services, Mr Ibrahim Gaga reaffirmed the bank’s commitment to supporting women and girls in achieving their business dreams.

  • NEXIM boosts battery production

    NEXIM boosts battery production

    Metal Manufacturing Nigeria Limited (MMNL) has increased production capacity to 25,000 batteries monthly through a facility it obtained from Nigerian Export-Import Bank (NEXIM).

    The firm said its flagship brand, “Starplus” became a best-seller, while an average of 4,000 batteries are exported to Ghana and others monthly.

    MMNL commended NEXIM for granting it the facility that boosted its capacity.

    Managing Director, Kumar Saraf, and Chief Finance Officer, Bikash Kumar, visited the bank in Abuja.

    They were received by NEXIM Managing Director, Abubakar Bello, and Executive Director of Business Development, Stella Okotete.

    Read Also: World Youth Skills Day: How NewGlobe is equipping Nigeria for the future

    Saraf noted the bank’s drive towards boosting development and fostering sustainable growth in line with the Renewed Hope agenda of President Bola Tinubu.

    He said MMNL invested in forward integration as it produces the plastic battery cases and secured 10 Original Equipment Manufacturing (OEM) customers.

    Part of the firm’s growth trajectory, he said, includes a backward integration project, which entails mining of lead and setting up a  plant in Ebonyi State.

  • NEXIM facility boosted our battery production, says MMNL 

    NEXIM facility boosted our battery production, says MMNL 

    The management of Metal Manufacturing Nigeria Limited (MMNL) has commended the Abubakar Abba Bello-led Nigerian Export Import Bank (NEXIM) for granting it a facility that has boosted its production capacity.

    Managing Director, Mr Kumar Saraf, and the Chief Finance Officer, Mr Bikash Kumar, gave the commendation on Wednesday when they paid a courtesy visit to the Abuja headquarters of the bank.

    An elated Saraf was full of praises for the bank for its drive towards boosting economic development and fostering sustainable growth in Nigeria in line with the Renewed Hope agenda of President Bola Ahmed Tinubu.

    Received by the Managing Director Abubakar, Abba Bello, and the Executive Director, Business Development, Hon Stella Okotete, the management of MMNL provided insightful updates on the company’s remarkable growth and performances.

    According to the MMNL executives, the bank facility has increased the company’s production capacity to 25,000 batteries monthly.

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    The company added that its flagship brand “Starplus” has emerged as the best-seller in the local market, while an average of 4,000 batteries are exported to Ghana and other ECOWAS countries monthly.

    The Managing Director said the company has invested heavily in forward integration as it produces the plastic battery cases and has thus far, secured 10 Original Equipment Manufacturing (OEM) customers who previously imported batteries. 

    Part of the company’s growth trajectory also include commencing a backward integration project, which would entail the mining of lead and setting up a beneficiation plant in Abakaliki, Ebonyi state. 

    The proposed project would ensure sustainable raw material supply and an increased export capacity.

    Saraf said: “The batteries are 100 per cent made in Nigeria with Indian technology. 

    “They are the first Made in Nigeria inverter batteries proudly supported by NEXIM Bank.”

    Managing Director of NEXIM Bank thanked the management of MMNL for the visit.

    Bello said the company’s performance record is an inspiration to the bank to do more in supporting businesses.

    He said NEXIM was committed to doing more towards MMNL’s growth and expansion efforts. 

    “Together, we can drive economic development and foster sustainable growth in Nigeria, and we are committed to doing just so,” Bello said.

    Caption:

    From left: Managing Director, Metal Manufacturing Nigeria Limited, Mr Kumar Saraf; Managing Director, Nigerian Export Import Bank (NEXIM), Mr Abubakar Abba Bello; Chief Finance Officer MMNL, Mr Bikash Kumar and Executive Director, Business Development of NEXIM Bank, Hon Stella Okotete during a courtesy visit of MMNL management to NEXIM Headquarters in Abuja.

  • Fed. Govt., NEXIM bank collaborate on solid minerals financing, export

    Fed. Govt., NEXIM bank collaborate on solid minerals financing, export

    The Federal Government is collaborating with the Nigerian Export-Import (NEXIM) bank on Solid Minerals financing and the export of top Minerals.

    The collaboration is based on a commitment to  strengthen partnerships to close the logistical gap hampering exports of solid minerals while leveraging the bank’s resources to bolster mining sector financing.

    Receiving the NEXIM Bank Managing Director, Abba Bello, in his office in Abuja, the Minister of Solid Minerals Development, Mr. Dele Alake, lauded the bank for deploying its financial tools to assist the mining industry in meeting some of its critical needs of equipment and funding, noting that more should be done.

    Special Assistant on Media to the Minister, Segun Tomori made this known in a statement. Tomori added: “The Solid Minerals Development Ministry and the Nigerian Export-Import (NEXIM) bank have committed to strengthening partnerships to close the logistical gap hampering exports of solid minerals whilst leveraging the bank’s resources to bolster mining sector financing.

    “I think your role is quite critical to filling the financing shortfall for local mining investors. We need you to up the game for our local investors so that we can minimise logistical bottlenecks for exports of solid minerals while also scaling up access to funding and mining equipment,” the Minister said.

    “Briefing the Minister on NEXIM Bank’s mining support scheme, Bello stressed that it is conceptualized to support local mining companies’ access to capital to develop critical minerals, provide credit enhancement instruments to de-risk projects, facilitate and attract investments to enable mining projects to optimize the contribution of the mining sector to the nation’s Gross Domestic Product (GDP) and exports.

    Read Also: NEXIM keys Into renewed hope agenda, unveils digital Hub to boost cocoa production

    “The mining scheme will comprise Equipment Leasing Framework, which is designed to minimize investment capital outlay for needed production equipment; Contract Mining Framework, which would enhance productivity and scale of mining operations while the Buyers Credit/ECA financing is intended to leverage partnerships to enhance value-added operations and expansion of current mining operations”, Bello added.

    “Highlighting the bank’s role in addressing logistical challenges to exports of solid minerals, the NEXIM bank MD revealed the successful survey and charting of the lower River Niger which has improved navigation and enhanced the capacity to facilitate transport of bulk solid minerals through the Ajaokuta terminal and Burukutu port.

    “Dr. Alake expressed satisfaction with the bank’s commitment to the development of the mining sector, pledging the ministry’s collaboration to leverage the bank’s resources for the benefit of the mining industry.”

  • NEXIM keys Into renewed hope agenda, unveils digital Hub to boost cocoa production

    NEXIM keys Into renewed hope agenda, unveils digital Hub to boost cocoa production

    The Nigeria Export-Import Bank (NEXIM) has launched a digital hub, cocoa connect Africa in its bid to boost cocoa production in the country.

    It stated that it is being driven by a renewed thinking that will achieve the renewed hope target of $1tr economy in line with the vision and mantra of President Bola Ahmed Tinubu.

    The Managing Director, NEXIM, Abubakar Bello, explained that the move is to bring every activities of every stakeholder in the cocoa industry and the cocoa ecosystem under one platform.

    Abubakar stated this on the sidelines of the International Cocoa and Chocolate Forum tagged “Putting values in cocoa in producing regions” in Lagos on Thursday.

    In his words: “It is about somebody who has products and meeting someone who is interested in the product. It is about connection and market information.  We are putting all the stakeholders on the value chain for different commodities, but the one we launched today is for cocoa and we are also doing the same for cashew.”

    He added, “We are also doing so for Shea. The idea is to have a cluster because today everything is done digitally, why should our trade be lagging behind. We must create a platform for every stakeholder to log in to purchase what they want digitally from their comfort zones.”

    He pointed out that the launch of the platform is not for profit making, but to boost trade facilitation and setting standards for traceability

    “The platform can be used to educate farmers, it can be used to educate regulators and to pass information on latest developments.

    Read Also: NEXIM Bank MD reiterates need to add value to cocoa exports

    We must create an awareness for farmers on the latest trends, there is also a need for effective regulation in the value chain,” he said.

    He added that the vision of the digital hub is to unlock the boundless potential of Cocoa in Africa.

    “At Cocoa Connect Africa, we offer more than just a platform; we provide an immersive experience tailored to elevate your journey in the cocoa industry,” he noted.

    Executive Director, Business Development of Nexim bank, Hon. Stella Okotete, said NEXIM Bank has supported Cocoa exporters with over N100bn in the last 7 years with all facilities performing and created Jobs for over 7000 Direct and 70,000 indirect Jobs for Nigerians.

    She added that amongst others, NEXIM created a Small and Medium Exporters Facility (SMEF) to support exporters, stressing that NEXIM has been supporting suppliers by growing their capacities.

    She commended the young entrepreneurs who are making impacts in the Cocoa value chain and assured them of her support through the Bank.

    She added that with the recent spike in the prices of cocoa, the bank has opened up its refinancing windows to support exporters with single digit loans.

    “We are sure that the cocoa exporters will take advantage of the opportunity, because it will help them to reduce the burden of the double digit interest rate. We are ensuring that we would continue to do more,” she averred.

    The Oloni of Eti-Oni, Osun State and Founder, International Cocoa Diplomacy, Oba Dokun Thomson Gureje, said the International Cocoa and Chocolate Forum by International Cocoa Diplomacy is a platform for networking, partnerships, collaboration, ideas and cultural exchange, bilateral trade, opportunities, learning and forming new alliances. 

    He pointed out that the forum is is a follow up on the discussion at the recently concluded UK edition in October 2023 which had the theme: The new EU policy, its effect on cocoa producing regions and the way forward for the global cocoa trade and an industry that supports transformation with regard to the resilience of cocoa farmers. 

    “It is a call to action to continue the discussion where policy formation will meet investment requirements for the sole purpose of creating the cocoa culture that will begin to intentionally add value to cocoa and create wealth and prosperity at origin to reduce dominance of the industry by consuming regions and to also explore ways for shared value purposes putting into consideration the new EUDR and COP28 Resolutions,” he said.

    He added that the forum is also to bring policy makers, financial institutions and stakeholders from across the continent to exploit ways of taking advantage of AfCFTA and other emerging cocoa and chocolate markets. 

    The Cocoa Connect Africa was built by NEXIM in collaboration with its long-term partner, Sapphital Limited, a leading digital company in Nigeria.

    Other participants at the event were representatives of Lagos and Osun State Governors among others.

  • NEXIM disburses N22b, records growth

    Over the last one year, the Nigerian Export Import Bank (NEXIM Bank) has disbursed about N22billion, thereby facilitating the creation and sustenance of about 2,039 direct jobs, in addition to many indirect jobs and foreign exchange earnings of about $267million annually.

    The beneficiaries include exporters of agricultural commodities and value-added products across the country with nation-wide impact, cutting across various sectors and agric value chain including  cocoa, cashew, sesame seed, gum Arabic and leather products.

    Aside its funding intervention, the bank has recorded a quantum leap in its financial indices, with a profit of about N2.09billion recorded in 2018, from a loss position in 2017. The bank’s balance sheet size also doubled from about N61billion in 2016 to about N117billion in 2018, and is projected to increase to N190billion by December, 2019.

    Following the appointment of a new management in April 2017 led by Abba Bello and the inauguration of the Board under the chairmanship of the Central Bank of Nigeria (CBN) Deputy Governor, Joseph Nnanna in March, 2018, NEXIM Bank has undertaken significant steps to retool its operations.  Besides collaborating with the CBN in the management of intervention funds to the tune of N550billion, its export support programme is predicated on the  Produce, Add Value and Export(PAVE) philosophy.

    NEXIM’s efforts to develop the non-oil export sector is currently structured along six initiatives, which include support for critical agricultural commodities, particularly in products where the country has high comparative advantage.  This is to minimise informal trade and boost the country’s export footprint.  NEXIM is also supporting services export in the areas of the creative economy, business process outsourcing and professional services, as well as medical tourism towards saving about $1billon lost annually to foreign trips by Nigerians.

    As part of efforts to improve the packaging and quality standards of Nigeria’s exports, the bank is also providing funding and investment guarantees to facilitate private sector investments and partnerships in internationally acceptable laboratories and assaying facilities and related infrastructure.  This is in addition to providing funding support towards the establishment of conditioning, irradiation and sterilisation facilities to enhance shelf life of perishable goods, as well as production of jute bags, corrugated cartons and flexible packaging materials.

    Given Nigeria’s huge solid minerals potentials and the logistics challenges that have prevented the realisation of such benefits, NEXIM Bank is supporting the promotion of inland waterways operations and bulk export terminal upgrade though its Sealink project.  This is expected to facilitate annual shipment of over 30million tonnes of Solid Minerals valued at $1.8billion.

    Having realised the important contributions of the Small and Medium Enterprises (SME) sector and the need to integrate many of the small traders into the formal sector, the bank is partnering with other stakeholders under the auspices of FSS 2020 to develop the regulatory and legal framework for Factoring business in Nigeria.  This is with a view to providing additional funding window and enhancing financial inclusion of small scale exporters.

    NEXIM Bank’s intervention is also targeted at states and regional development through its one-state-one export commodity programme, whereby at least N1billion has been earmarked to develop one or two identified exportable commoditie(s) towards achieving the Zero Oil Plan policy of the federal government and promoting inclusive economic growth.

    In implementing this programme, the NEXIM Bank is collaborating and has signed a Memorandum of Understanding with the Nigerian Incentive Risk Based System for Agricultural Lending (NIRSAL) to deploy interest rebate and risk mitigating instruments in support of projects in the agricultural value chains.

  • NEXIM, SMEDAN to promote SMEs’ exporters

    The Nigerian Export-Import Bank (NEXIM)  and the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) are collaborating to promote exports by the Small and Medium Enterprises (SMEs) in the country.

    To guarantee this collaboration, both agencies have has signed a Memorandum of Understanding (MoU) to this effect.

    A statement from NEXIM said: “The MoU was aimed at promoting synergy between the two institutions towards capacity building of Nigerian SMEs to boost their contributions to exports and enhance formal trade.”

    It is also expected that “such capacity building efforts will help the SMEs to implement the required corporate structures, which will position them to benefit more from government incentives towards increasing their productivity, thus promoting economic diversification and inclusive growth in line with the Economic Recovery and Growth Plan (ERGP) of the current administration.”

    Specifically, the MoU states that the two institutions shall jointly ensure that more Micro, Small and Medium Enterprises (MSMEs) benefit from the African Growth & Opportunity Act (AGOA) initiatives of the United States of America.

    Both institutions will also promote technical capacity of MSMEs through workshops in the six geopolitical zones of the country and also identify export ready entrepreneurs for possible funding.

     

  • NEXIM mulls factoring to boost credit to SMEs

    The Nigerian Export Import Bank (NEXIM bank) is likely to perform factoring function or support a company that is registered as a domestic factor, The Nation has learnt.

    The plan is meant to support tMicro Small and Medium Enterprises (MSMEs) search for credit.

    What factoring does is that when you supply to bigger company, you more or less take the invoice that has been issued and transfer it to a third party  (the Factor) who himself can then go and collect it when it matures because he has the capacity.

    Also, the small enterprise has received the money on that same day he issues the credit and removes it from its balance sheet so the Factor takes the risk of the possibility that the obligor cannot be able to pay.

    When the factoring laws is passed, signed and it becomes operational what NEXIM bank will be doing is that they are going to go into what is known open trade, in other words, Afreximbank is going to provide a lot of money to NEXIM and NEXIM bank in itself will then be able to support a lot of small and medium size enterprises.

    These revelations were made yesterday by Osaro Eghobamien, Managing Partner, Perchstone and Graeys on the sidelines of the ongoing 25th anniversary and Annual General Meeting of the Afreximbank in Abuja.

    According to him, “when you introduce this law with the support of the central bank we will find Afreximbank providing a secondary market service which means they say they have funds to give to NEXIM, NEXIM either performs a factoring function or they have companies that are performing factoring functions and then the money flows down to our exporters.”

    NEXIM bank he said “already has a number of people who are on their books some of them they already support, some of them they like to support, they are not bankable as we speak today, what will then happen is that automatically they become bankable and therefore enhance export trade.”

     

  • CBN, NEXIM vote N500b for local manufacturers, others

    To boost non-oil exports, the Central Bank of Nigeria (CBN) and the Nigeria Export-Import Bank (NEXIM) will provide N500 billion for local manufacturers, CBN Governor Godwin Emefiele said yesterday.

    He told financial reporters at a workshop in Uyo, the Akwa Ibom State capital, that CBN would continue to take major steps to support the economy and the real sector. He was represented by CBN Deputy Governor (Corporate Services) Edward Adamu.

    Speaking on the theme: “Sustaining economic growth beyond recession”, Emefiele said it was key to remember how the economy got into a recession in the first instance.

    Nigeria, he said, entered recession because of the fall in oil prices from an average of about $110 per barrel to $28 per barrel; normalisation of monetary policy by the United States Federal Reserve System, which led to the stoppage of an injection of about $85 billion per month into the global economy; and geopolitical tensions among critical trading routes and partners around the world.

    This, he said, led to a slowdown in economic growth, culminating in five consecutive quarters of Gross Domestic Product (GDP) contraction, bottoming at -2.3 per cent in the third quarter of 2017, having grown by nearly seven per cent in previous years; rising inflation, peaking at over 18 per cent in January 2017, from as low as nine per cent in January 2016.

    He said the foreign reserves would continue to grow, adding that the reserves may hit $50 billion sometime later this year.

    According to him, there was also persistent increase in unemployment rate to 16.2 per cent in the second quarter of 2017, from 8.2 per cent at the same period of 2015; significant depreciation of the exchange rate, reaching N520 to $1 in February 2017, from as low as N155/$1 in June 2014.

    “In light of these and other policy responses, we are delighted that the economy has turned the corner with our worst days clearly behind us. For example, the GDP recovered after five quarters of continuous contraction, recording positive growths of 0.7 and 1.4 per cent in quarters two and three of 2017, respectively, and signalling an exit from the recession; inflation declined from a peak of 18.7 per cent in January 2017 to 14.3 in December 2017; exchange rate appreciated significantly from over N525/$1 in February 2017 to about N360/$1 today, tapering premium across various windows and segments of the market,” he said.

    Emefiele said there was a boost in local production, which he attributed partly to the CBN’s development finance efforts and the dogged implementation of its foreign exchange (forex) policies. “Today, many local manufacturers are reporting major boosts to their revenue and profit. Whilst basking in the delight of these accomplishments, what then must we do to sustain them and ensure that we do not slide into another recession? Those of us who have been entrusted with leadership and policy making responsibilities must neither become complacent nor over-confident. We must strive to improve and sustain the same policies that have gotten us this far,” he said.

    Emefiele said though the import bill might have fallen, the manufacturing and agriculture sectors still have a long way to go to attain self-sufficiency in those sectors.

    “We must not be quick to discard the restrictive measures which aided our recovery simply because the metrics have improved. At the CBN we will continue to fine-tune our policies and strategies based on our understanding of evolving developments and supported by in-house technical analysis and simulations. We will remain proactive in ensuring that the welfare of Nigerians is optimised at any point in time.

    In the area of development finance, he said the CBN would continue to provide access to much-needed credit to sectors with the potential to create jobs on a mass scale.

    “In this regard, we will explore opportunities to expand the highly-successful Anchor Borrowers’ Programme to other crops and States,” Emefiele said.