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Tag: NEXIM

  • NEXIM to revive Multi-Trex with N5b facility

    The Nigerian Export-Import Bank (NEXIM) is  set to give a financial lifeline of between N4 billion and N5 billion to Multi-Trex Nigeria to restore and boost the cocoa firm’s operations, The Nation learnt.

    NEXIM Managing Director/CEO, Abba Bello, said the cash would come from the N500 billion Export Stimulation Facility (ESF) and N50 billion Export Development Fund (EDF) provided by the Central Bank of Nigeria (CBN) for exports.

    The NEXIM Bank boss spoke at the weekend during the oversight visit to Multi-Trex Nigeria’s factory at Warapa, Ogun State by the House of Representatives Committee on Banking and Currency, led by the House Chairman, Hon. Jones Onyereri.

    He said the lender is committed to promoting export investments in the non-oil sectors.

    Bello assured of his readiness to effect the processing of loan application by Multi-Trex, but alluded to the fact that the terms of settlement between Multi-Trex and the Assets Management Corporation of Nigeria (AMCON) had to be reached.

    “It is our determination to bring back Multi-Trex to life. This will create jobs and encourage export,”  challenging the managing director of the company to show more commitment towards revival of the cocoa giant.

    Bello said looking at the huge investment and factory’s equipment, NEXIM Bank considered it very important to support the project which could create thousands of direct and indirect jobs.

    He stressed that what the company needs is only the working capital, saying that as an export credit institution charged with the mandate to promote export diversification of the non-oil sector, it has in the past supported the cocoa value chain by funding major cocoa processing plants.

    Bello said the value addition of the company to the growth of forex earnings for the country and the Gross Domestic Product (GDP) is driving NEXIM’s intervention in the company’s operations. He said  when operations, it could employ 1,500 workers with the huge number of  indirect employments for the immediate community.

    The Multi-Trex has, in the last two years, been under AMCON’s receivership over its indebtedness to financial institutions which AMCON bought over from the deposit money banks. Last September, the corporation and Multi-Trex  agreed to settle the matter.

    Bello said Multi-Trex Integrated,  the largest cocoa processor company in the country, was encouraged to begin production as cocoa remains the largest non-oil export for the country, and will enable it earn more forex.

    Onyereri said he was delighted to visit the company and would ensure that the CBN took urgent actions to expedite the recovery. He said the private sector should be encouraged to make huge contributions to the country’s Gross Domestic Product (GDP).

    He said: “I wished l had been made aware of the situation earlier than now though it’s not too late as the company ought to be encouraged by the government and not what it experienced. NEXIM should do well enough to put a project manager that will monitor the fund disbursement adding that the country’s forex earnings will rise once the company begins production.

    Multi-Trex Limited Vice Chairman and Chief Executive Officer, Dimeji Owofemi, said it was their expansion initiative, which led them to seeking more funds to finance it in 2008 that led to their predicament as the private placement experienced a technical failure, hence the beginning of problems with their banker.

    He said a tripartite agreement among NEXIM, Bank of Agriculture (BoA) and the Bank of Industry (BoI), with NEXIM leading would quicken the recovery for full production.

    “I have been in the cocoa business since July 1,1987,which makes it 31 years, and people are saying that I should move on. But I tell them that I am too old to start something new as dreams are better continued by those that started them. Hence, the resilience to see the company back to production. I have learnt my lessons from the situation and it won’t happen again,” he added.

  • NEXIM, Central African states to promote trade

    The Nigerian Export-Import Bank (NEXIM) is collaborating with the Development Bank of the Central African States (BDEAC) to promote regional trade and investment.

    The Managing Director of NEXIM, Mr. Abba Bello disclosed this when he received a delegation from the BDEAC led by its President, Mr. Fortunato Ofa Mbo Nchama,  in his office in Abuja. The meeting was to explore areas of collaboration between the two organisations.

    To formalise the relationship, a memorandum of understanding (MoU) was signed between the two institutions.

    A statement from NEXIM yesterday explained that the partnership is expected to leverage on opportunities in the areas of technical assistance/capacity building, information exchange as well as transactional relationships, including lines of credit, guarantees and co-funding arrangements.

  • CBN, NEXIM vote N550b to stimulate export

    CBN, NEXIM vote N550b to stimulate export

    The Central Bank of Nigeria (CBN) and Nigeria Export-Import Bank (NEXIM Bank) are making N550 billion available for lending to non-oil exporters.

    The loan will come at nine per cent interest rate and is expected to help the investors export more commodities, earn more foreign exchange from export proceeds and strengthen the economy.

    Central Bank Governor  Godwin Emefiele said N500 billion of the fund is from the Export Stimulation Facility while the balance of N50 billion is provided by  the Nigeria Export-Import Bank (NEXIM Bank) Direct Intervention Fund.

    He spoke after a meeting with non-oil exporters, producers and processors in Lagos, Friday night.

    The framework for the disbursement of the fund, he said, would be released in the next one week by NEXIM Bank and the CBN Development Finance Department.

    Emefiele said that exporters will send in their request and when they get the fund, their operations will be monitored to ensure there is no undocumented export.

    He said that funding remains a major problem that every business faces and funding at concessionary pricing will help them carry out more export volumes.

    The CBN boss said that in the last two years, the country’s revenue has dropped significantly prompting the CBN and the Federal Government to consider revenue sources outside crude oil to boost its foreign exchange earnings.

    The scheme will be driven by Produce, Add Value and Export (PAVE) principles. He said the CBN engaged exporters and identified various products in the non-oil sector- cocoa, cashew nuts, palm produce, sesame seeds, solid minerals and rubber to benefit.

    “In order to create jobs for our people, there is a need for us to advance further to value addition and begin to talk about processing of exportable items like rather than export raw cashew, we are thinking of exporting processed cashew. Rather than export raw cocoa, we are thinking of giving support to companies that process cocoa to cocoa butter and cakes and all that,” he said.

    “All transactions that will be done and that will receive funding from the CBN will be for documented export transactions and we are also saying that before those facilities are provided to them, these exporters will commit through their banks.”

     

  • NEXIM Bank boss visits Fayemi

    NEXIM Bank boss visits Fayemi

    Managing Director and Chief Executive Officer of Nigerian Export-Import Bank, Mr. Abba Bello, yesterday paid a courtesy visit to the Minister of Mines and Steel Development, Dr. Kayode Fayemi, at his office in Abuja to introduce himself and his executive management team to the minister.

    Mr. Bello used the opportunity of the visit to appreciate the commendable work the minister and his team are doing in the development of the solid minerals sector.

    He said: “Solid minerals, along with the other three sectors of manufacturing, agriculture and services are an essential pillar upon which our activities within the non-oil sectors rest and deserves NEXIM Bank’s full support.”

    Welcoming the NEXIM Bank team, Dr. Fayemi expressed his appreciation to Mr.  Bello, mostly for recognizing the importance of the sector and the strong synergy between the work of the ministry and the bank.

    He noted that Mr. Bello, being a top-ranking professional banker, would be able to meet the challenges of his new office and contribute to the work of the administration in fixing the Nigerian mining industry to become a key contributor to achieving national goals of diversifying the sovereign revenue base and creating jobs.

    The minister used the opportunity of the visit to brief Mr. Bello and his executive team on the recent inauguration of the newly constituted Board of the Solid Minerals Development Fund (SMDF) on May 25.

    According to the minister, the SMDF, which seeks to address the fundamental sectoral challenge of insufficient funding – a problem that has historically undermined the growth potential of the sector, is an important milestone in government’s efforts to reposition the Nigerian mining industry.

    The minister said the Solid Minerals Roadmap, to which the SMDF would provide support, had prioritised the development of seven strategic minerals, namely, coal, bitumen, limestone, iron ore, barytes, gold and lead/zinc.

    Dr. Fayemi stated that a close collaboration between the ministry and NEXIM Bank would be strategic to growing the sector, particularly in achieving the goals set under the Solid Minerals Roadmap.

    Mr. Bello expressed immense appreciation to the minister for his uncommon commitment to growing the solid minerals sector and pledged that NEXIM Bank, in line with its mandate, would continue to be a dependable partner with the ministry in the commitment to fixing the Nigerian mining industry as an enabler to economic diversification and job creation.

  • Will National Dev. Bank consume BoI, NEXIM, others?

    Will National Dev. Bank consume BoI, NEXIM, others?

    There are fears that the takeoff of the National Development Bank of Nigeria later this month will naturally lead to the exit of the existing development finance institutions like the Bank of Industry, Nigeria Export-Import Bank and many others. Ibrahim Apekhade Yusuf in this report examines the clear and present dangers

    SINCE the Minister of Finance, Mrs. Kemi Adeosun mooted the idea of the National Development Bank of Nigeria (NDBN) last year, there have been a lot of mixed reactions over the pronouncement with many stakeholders raising their voices above the din over what they consider a misstep.

    Cross of the matter

    At issue is that the lawmakers are considering a bill to establish the National Development Bank of Nigeria. The proposed bank is to provide loans to small, medium and large industrial enterprises with five to ten-year maturity, with a grace period of one to three years depending on the enterprise. The bank will also provide working capital loans to eligible enterprises where projects are unable to secure a loan from the banking system; the loans could be in naira or foreign currencies depending on the source of available funds for the requirement of the eligible enterprise or project. The eligibility procedure  requires that the enterprise or project is financially viable, has a majority equity holding by Nigerians and in the case of a manufacturing enterprise or project 60% of the value of its raw materials and other production inputs are derivable from the local economy.

    The bill tagged: ‘A Bill for an Act to establish the National Development Bank of Nigeria, 2015’, was sponsored by Senator Ibrahim Gobir, the bill, which has passed second reading, seeks to repeal the BoI, the Nigerian Bank for Commerce and Industry Act and the National Economic Reconstruction Fund Act.

    Among the DFIs to be affected include: the Bank of Industry, Bank of Agriculture, Nigeria Export-Import Bank, Nigeria Export Promotion Council, Small and Medium Scale Enterprises Development Agency, National Economic Reconstruction Fund and Federal Mortgage Bank among others.

    As to be expected, the Senate had hosted a public hearing last month to discuss the nitty-gritty of the bill.

    Declaring open the public hearing, the Senate President, Bukola Saraki, said the Senate has remained unflinchingly committed to using substantial legislative time and energy towards economic reforms with major focus on reducing the cost of doing business in Nigeria as well as boosting enterprise development.

    “The National Development Bank of Nigeria (Establishment bill) is one of those bills we have identified as crucial in expanding the access to finance opportunity for our people and promoting long-term borrowing that is less fragile,” he said.

    Crossfire among interested stakeholders

    As to be expected the proposal for the Bank has naturally pitched a lot of stakeholders against one another.

    The Acting Managing Director of the Bank of Industry (BoI), Waheed Olagunju, fired the first salvo at the Senate proposal to dissolve BoI and establish a National Development Bank of Nigeria (NDB), just as the Minister of Finance, Mrs Kemi Adeosun and the Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, threw their weight behind the dissolution of the BoI.

    The parties spoke at the Senate during a public hearing on the National Development Bank of Nigeria (Establishment etc) Bill 2016.

    Olagunju said the dissolution of the 57-year-old institution would not augur well for the country’s financial sector.

    “BoI is not opposing By Okwy lroegbu- Chikezie

    the establishment of Development Financial Institutions (DFIs) in Nigeria… But BoI is a brand that commands domestic and international confidence. It is not going to be in the best interest of the country for us to dissolve an institution that we have built over the years. It is not good to leave known for unknown,” he said.

    On her part, Adeosun, represented by Christopher Gabriel, said the establishment of NDB was capable of transforming the country’s SMEs.

    Also, Emefiele who was represented by the Deputy Governor of the Bank in charge of Financial System Stability, Dr. Okwu Nnanna, supported Adeosun’s position, saying “We have no objection, in fact the CBN will welcome it.”  He however stressed the need for proper capitalisation of the bank when established, adding that, “without capitalisation, we will not make progress.  As far as we are concerned, the more, the merrier.”

    In his presentation at the hearing, Olagunju said the BoI, as presently constituted, is fulfilling the mandate envisaged in the proposed legislation by supporting genuine entrepreneurs. Therefore, it should be left to continue its operations as it is. The merger envisaged in the proposed bill took place fifteen years with the merger of the mandates of NIDB, NBCI and NERFUND.

    According to him, “The 57year old institution that metamorphosed into BoI 15 years ago should be provided with more suitable capital to be able to further support the real sector instead of duplicating functions by creating new development finance institutions, bearing in mind the failure of similar DFIs in the past, such as the NBCI, NERFUND, People’s Bank, Community Banks, etc.”

    He recalled that the Ahmed Joda Committee that was set up by President Obasanjo during his first term was mandated to rationalise the multitude of federal government agencies performing identical functions. The merger of NIDB, NBCI and NERFUND to form the Bank of Industry was one of the Committee’s major recommendations stated Mr. Olagunju.

    He added that because the recommendations of the Joda Committee were not fully implemented the Jonathan Administration set up another Presidential Committee on the Rationalisation of Federal Government Parastatals, Commissions and Agencies headed by Mr. Steve Orosanye.

    Mr. Olagunju concluded by advising that “the National Assembly should support industrialisation by enacting legislation that will help create an enabling environment for business to thrive, such as an amendment to the Land Use Act, tax incentives for SMEs and establishment of industrial parks.

    “This will substantially address the demand side challenges of finance for SMEs in Nigeria, as vagaries of the business environment have been making the sector unattractive to private and public lenders.”

    The BoI, a limited liability company, is a product of the 2001 merger of the mandates of Nigerian Industrial Development Bank (NIDB), Nigerian Bank for Commerce and Industry (NBCI) and National Economic Reconstruction Fund (NERFUND).

    BoI has been operating profitably since 2004 following its successful restructuring exercise. In 2014 it developed a 5-year strategy, with a strategy revalidation exercise carried out in the third quarter of 2016 in view of the rapidly unfolding developments in the macro-economic environment.

    According to the bank, in line with its vision to operate under global best practices, BoI has been benchmarking itself against top-notch DFIs in Africa, Asia, South America and Europe.

    In the last 15 years, BoI has been a platform through which successive democratic federal governments, and even the Central Bank of Nigeria (CBN),  have implemented their various economic and social developmental initiatives such as real sector support programmes, MSME and entrepreneurship development, as well as financial inclusion initiatives.

    In the view of Comrade Issa Aremu, Vice President, Nigeria Labour Congress, the whole talk about the scrapping of some of the existing agencies fly in the face of good reasoning.

    Apparently making a case for some of the DFIs, the labour leader said: “In principle, anything put together to drive development is worthwhile. However, the BoI is tested, and despite its limitations, it is performing well. It has been thinking outside the box to support industries, even in the critical issue of textile industry funding.

    “In conclusion, let’s strengthen institutions performing well, and remodel moribund ones. Let BoI stay, all we need to do is to strengthen it.

    Echoing similar sentiments, Comrade Olusoji Salako, who is the Vice President,  Trade Union Congress, said: “Rather than scrapping the BoI for a new bank, we should be considering how to strengthen the former because of its many achievements.”We don’t have to change the winning team,” he added. Raising a poser, Salako queried: “Is there anything wrong in allowing BoI to continue with the good job that it is doing while the NDBN is established to co- exist along with BoI?”

    Another stakeholder who lent his voice to the argument during the public hearing is the Chief Executive Officer of the Nigeria Economic Summit Group, Loaye Jayiola.

    While rooting for the status quo, BoI, he said: “I believe what we are trying to do is to raise much more funds for our people. In doing that we have to be careful! In March 2015, an event on a Development Bank of Nigeria took place in Abuja, and it was applauded because it was said the Bank was to raise big-ticket funds. The understanding was that the Development Bank was to operate at the wholesale level, while BoI, the Bank of Agriculture and the Federal Mortgage Bank operate at the retail level. So, if we are considering development banks in Nigeria, we need to recognise these two levels: wholesale banks to attract big-ticket funds for the retailers to disburse the funds to entrepreneurs.”

    Clear and present dangers

    Investigation by The Nation revealed that some of the affected agencies being penciled down are already jittery over the development.

    Speaking with a cross-section of some of the agencies at the weekend, most of them maintained studied silence when The Nation attempted to feel their pulse.

    Already, the staff of one of the affected agencies, National Economic Reconstruction Fund, which the federal government shutdown in June last year following the crises that have crippled the agency, don’t know what fate befall them .

    There have been allegations of mismanagement and embezzlement of funds running into about N700m levied against the interim management of the agency.

    The federal government had directed all workers of the agency to proceed on indefinite leave pending further action on the agency and subsequently mandated the Ministry of Finance set up a committee to investigate the allegations of corruption leveled against the current interim management of the agency.

    When The Nation put a call to the BoI boss he could not be reached as at press time. However, a highly placed source at the asked not to be named as a result of the sensitive nature of the matter said the management was convinced that the organisation was a path of progress.

     

  • NEXIM, Fidelity Bank deepen non-oil export

    NEXIM, Fidelity Bank deepen non-oil export

    The Nigerian Export Import Bank (NEXIM Bank) and Fidelity Bank Plc are taking measures meant to enhance non-oil export and create wealth for Nigerians.

    Both lenders urged exporters to explore opportunities presented by the N500 billion non-oil Export Stimulation Facility (ESF) as well as the expansion of the export credit Rediscounting and Refinancing Facilities (RRF) to develop the economy, stimulate their operations, and create jobs for the people.

    Fidelity Bank’s Executive Director, Shared Services & Products, Chijioke Ugochukwu, said the lender is always at the forefront of financial services solutions and lending. She said the bank is committed to making a success story out of supporting non-oil export business.

    “Without a doubt, the most important thing for Nigeria today is non-oil export. We took a decision to play big in the cocoa sector, cashew nuts, and other key sectors, in a practical way. That is why we have a lot of talks around Fidelity Bank is very ready for export business and we want to attract successful entrepreneurs to the non-oil export business. We can assure you, this is more than talk. We do not just want to do export non-oil products, we want to do export them successfully,” she said.

    The acting Managing Director/Chief Executive, NEXIM Bank, Bashir Wali, spoke on the lender’s activities in non-oil export when he featured as guest on the Fidelity SME Radio Forum, a programme sponsored by Fidelity Bank to educate, inform, advise and inspire budding entrepreneurs, that was monitored on Inspiration FM in Lagos.

    The Central Bank of Nigeria (CBN) recently introduced the ESF and the RRF with a view to supporting the diversification of the economy and to expedite the growth and development of the non-oil export sector.

    Wali described Nigeria as endowed with both natural and human resources, including with huge untapped resources in the non-oil sector. He cited a National Bureau of Statistics report which put the total value of the country’s non-oil earnings in 2015 at $5.9 billion, with an average of $6.18 billion over the past five years.

    He said the ESF is aimed at encouraging entrepreneurs in the export sector so as to boost foreign exchange earnings from the non-oil sector.

    According to the NEXIM boss, in terms of informal trade, the amount ranges between $12 billion and $14 billion annually.

     

  • NEXIM MD unveils guidelines for N500b export facility

    NEXIM MD unveils guidelines for N500b export facility

    The Acting Managing Director/Chief Executive, Nigerian Export Import Bank (NEXIM), Bashir M. Wali yesterday unveiled the implementation modalities of the N500 billion Export Stimulation Facility and the N50 billion enhancement on the Rediscounting and Refinancing Facility.

    Speaking at the non-oil export stakeholders’ engagement session in Lagos, he said over the past few months, the NEXIM Bank has been working with the Central Bank of Nigeria (CBN) to review existing policies and strategies towards increasing funding support and stimulating additional investments in the non-oil export sector.

    He explained that during the course of this review, the bank has also met with various stakeholders, including exporters, commodity associations, bankers, the Organised Private Sector (OPS) and other relevant government agencies to obtain strategic inputs and share perspectives towards achieving our common objective of diversifying the Nigerian economy.

    He said the approval of the two intervention funding schemes and release of the operating guidelines by the CBN represent the result of NEXIM Bank’s collective efforts.

    He said with the release of the guidelines and commencement of the schemes, Nigerian exporters and export oriented businesses will now seize the opportunity to expand and upscale their operations towards boosting the current low contribution of non-oil exports, which has remained at about five per cent over the years.

    “Let me also add that besides the issues of availability and access to funds, we have also intensified our collaborations and engagements with relevant institutions and stakeholders towards addressing other challenges affecting the export sector such as the problems of infrastructure, issues of packaging and labeling as well as improving access to market,” he said.

    He said the event was meant to create a forum for discussion of the implementation modalities, the role of all participants and the expected outcomes from the successful implementation of these schemes.

  • NEXIM Bank to aid CBN on non-oil sector devt

    NEXIM Bank to aid CBN on non-oil sector devt

    The Nigeria Export-Import Bank (NEXIM) has pledged its support for the Central Bank of Nigeria (CBN’s) financing schemes for the development of the non-oil export sector.

    Acting Managing Director Alhaji Bashir Wali, gave the assurance at a one day forum organised for stakeholders in Kano.

    The forum was organised to expose the guidelines to all exporters, prospective exporters, products associations, bankers and other stakeholders for effective implementation of the schemes.

    Wali said: “Given the negative impact of the current low oil prices and scarcity of foreign exchange on the macro-economic indices and external balance, the need to urgently commence the implementation of the intervention schemes cannot be over- emphasised.”

    He recalled that a Non-Oil Export Stimulation Conference was held on Jan. 29, where strategic inputs were received from stakeholders to facilitate the review of policies and strategies towards additional financing and policy support programmes.

    According to Wali, the conference is aimed at encouraging and stimulating additional investments in the non-oil export sector.

    He said the CBN and NEXIM were committed to the effective implementation of the schemes for the development of the country

    The Controller, CBN Kano, Hajiya Amina Abubakar, said the bank had introduced the financing schemes for the sole aim of lending credence to the non-oil export sector.

    She called for effective implementation of the schemes in line with the indices of the speedy growth of a promising developing economy.

    “NEXIM Bank has a spectacular role to play in complementing the effort of the CBN on granting the N500 billion Export Stimulation Facility and the N50 billion Export Rediscounting and Refinancing Facility,” she added.

  • Bleak future for oil opens NEXIM Bank’s policy for re-examination

    Bleak future for oil opens NEXIM Bank’s policy for re-examination

    Long before today’s oil price anxieties across nations became very discernible, the Federal Government of Nigeria had mapped the terrain and opted for a policy direction that conceptualized, developed and escalated gainful activities in the non-oil sectors of the economy. Perhaps, it does not call for repeating that global oil prices are on a free fall. Given that oil remains the basis upon which the national budget is benchmarked, the downturn opens the country up to harsh vulnerabilities.

    Since this reality was fairly foreseen and foretold by development analysts it rightly ought not to have met Nigeria unprepared, right? To be fair to government, specific proactive steps had long been taken by governments including mandating a development finance agency with the responsibility of designing and driving the vision to promote and grow the non-oil sectors of the economy. That obligation fell on the laps of the nation’s flagship development finance agency, the Nigerian Export-Import Bank, NEXIM.

    Clear set steps were taken by NEXIM to upgrade the agricultural sector for instance, and handsome successes were achieved. Equally, specific promotional and investment portfolios were initiated by the bank for the film and home video sector. Films such as “Doctor Bello” and a few others were funded from NEXIM as a way of taking Nigerian products into the international markets. The bank’s support platform, no doubt, heralded the extensive reach and exploits that the film made in the European and American markets.

    Who knows, today’s growing presence of the Nigerian content in American market is arguably a product of that singular bold step by NEXIM years ago? The bank, as part of these initiatives, injected over 3 Billion Naira in the film and entertainment industry which is steadily yielding better Nigerian content at the same time opening doors to more employment outcomes as well as impacting handsomely on the lives of Nigerians.

    Nearly a decade into this journey NEXIM Bank by its mandate and in broad spectrum, has promoted the diversification of the Nigerian economy as well as deepening the external sector by provision of specific services in support of non-oil exports. Such services include credit facilities; risk bearing facilities such as export credit guarantee and export credit insurance; business development and financial advisory services as well as attract foreign investment capital into the country.

    NEXIM bank’s interpretation of this mandate is reflected in its strategic document that chose to create economic initiatives targeting “sectors with high employment and export generation potentials.” It identifies these sectors to include “the manufacturing, agro-processing, solid minerals and services.” The key activities taking the bank’s attention in respect of the services sector include tourism, transportation and entertainment. Effectively, NEXIM created a focal programme MASS agenda.

    So, how has NEXIM’s MASS agenda fared?  Nigerians entrepreneurs face much better prospects with more export window slots today than was possible years ago? Even though these innovative ideas are attracting much needed start-up funds at good pace, the kernel of the matter is: how soon can the objective of making Nigeria a non-oil dependent nation materialise? Roberts Orya, the Managing Director of NEXIM Bank points to no specific timeframe but reminds that “export of manufactured [Nigerian] products has increased by over 32 percent in the past few years. He acknowledges the fact that this position is merely the outset of a soon to blossom “industrial revolution in this country.”

    The matter of start-up funding does not appear a central issue in NEXIM’s strategic document neither is its focal mandate in export financing a necessary anchor to innovation start-ups. The reason why is it critical that we use start-up survival indicators to measure the NEXIM’s success level is because Nexim bank as a development finance bank, anchors its world view on trade. For obvious reasons, it draws not only from the design of its mandate but trending global association of poverty with nation’s trade status.

    Sub Sahara Africa’s record of international trade has remained progressively below five percent on all merchandise and three percent for agricultural products since 1960. Essentially, confronted with the above scenario, NEXIM may justifiably choose to deploy its MASS agenda formula to combat the dilemma. Nigeria’s international trade performance in respect of those sectors is no longer dismal. In the past few years, the trade indicators for Nigeria particularly in agricultural produce have been on steady upward climb, a remarkable justification of the bank’s focus on supporting trade growth.

    Given the size of Nigeria’s market, the biggest in Africa, the window of funding options as designed by development finance agencies ought to recognise innovation start-ups as potential huge influence in rapidly diversifying the economy. Because start-ups are not always primarily designed for immediate export slot success, start-ups are frequently designed to use the local markets to find their feet before benefitting on the export drive. So inevitably knowing how creative and enterprising Nigerians are, if by chance or design we miss the potentials for national economic growth tied to the fate of innovation start-ups, we would be missing out big time.

    The size of Nigeria’s consumption driven market often applauded by development finance agencies like NEXIM bank may not give us the full picture,  it is good to have a sizeable market but even more critically important to offer products that compete significantly in that market. For instance, Nigeria is a dominant player in the entertainment market in Africa because not only does she consume, she doggedly dominates the market with its products. What comes into Nigeria from international trade in this regard is a bonus.

    Few days ago, President Muhammadu Buhari underlined the focal relevance of diversifying Nigeria’s revenue channels while speaking with officials of the Federal Ministry of Mines and Power. While reiterating government’s resolve in getting relevant agencies to drive critical initiatives to improve the nation’s earnings from solid minerals, the President argued that the sector would escalate employment opportunities when properly harnessed. The NEXIM MASS initiative amply shares the same presidential visioning.

  • Crude oil a pain to economy, says NEXIM boss

    Crude oil a pain to economy, says NEXIM boss

    The discovery of crude oil has been described as a great pain on Nigeria’s economy, the Managing Director/CEO of Nigeria Export-Import Bank (NEXIM), Robert Orya, has said.

    Orya, who spoke over the weekend in Abuja at a forum tagged, ‘Business Talk In Summer’ organised by an Abuja based radio station- Cool Wazobia FM, said whereas other oil producing nations make good use of their oil proceeds to diversify their economy, Nigeria uses its oil proceed to kill other thriving sectors of the economy.

    He lamented that the agriculture sector with all its potentials to transform Nigeria economically, has been neglected because of the existence of cheap monies from the sale of crude oil.

    Orya warned that Nigeria will find itself in a fix should her oil dry up. The NEXIM bank boss noted that, Nigeria, essentially is an agrarian economy with oil producing capabilities has turned a lazy country because of cheap income from oil sources.

    He said: “Prior to rebasing of Nigeria’s economy in 2014, Agriculture contributed over 40 per cent of GDP, but with the rebasing, the Agric Sector now accounts for about 20 per cent, not because of lower productivity, but because other emerging sectors have diluted the contribution of Agriculture”.

    He stated that despite the fact that 93 per cent of our revenue comes from oil, it is an area that we should have used what we are getting from there to develop the non-oil sector.

    “It is the non-oil sector that determines the rate of our economic growth and not oil. If we had used that money to develop agriculture, agro-processing and to developed solid minerals, Nigeria will not have the magnitude of challenges it has today.”

    To address some of the problems militating against development of agriculture sector, Orya advocated the promotion of private investments through suitable incentive measures, like tax holidays and other fiscal measures to encourage investment in agriculture.