Nigerian exporters would be among other exporters in West Africa that will benefit from Nigerian Export-Import Bank’s $1 billion trade facilitation pact. The Memorandum of Understanding (MoU) was signed during the inaugural Intra-African Trade Fair in Cairo, Egypt.
How the fund will be utilised
In a statement made available to newsmen, NEXIM Bank made known that the MoU would be implemented under the Nigeria-Africa Trade and Investment Promotion Programme to support trade and investment flow between Nigeria and other African countries.
Under the agreement, AFREXIM will provide $1 billion Line of Credit, which will be disbursed by NEXIM to qualifying beneficiary projects and transactions in support of intra-African trade and investments.
According to the MoU, the fund is available to support the growth of trade between Nigeria and other African countries with special emphasis on value addition, particularly in primary goods and commodities. The statement said the $1 billion would assist in enhancing local earnings and job creation.
The fund is also available to support capital and investment flows as well as projects being sponsored by Nigerians in other countries.
While speaking during the signing, the Managing Director/Chief Executive of NEXIM, Abba Bello, said the deal would go a long way in boosting access of Nigerian exporters to investment capital and investment guarantee instruments, including the Small & Medium Enterprises (SMEs). He said through the pact, the bank would be able to promote intra-African trade and increasing the volume of formal trade.
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In implementing this programme, Bello also highlighted that the NEXIM bank would be working with all stakeholders, including exporters, investment partners as well as other financial institutions, both domestic and foreign to realise the NATIPP programme objectives.
NEXIM is an export credit agency in Nigeria. The bank was established by Act 38 of 1991 as an Export Credit Agency (ECA) with a share capital of N50,000,000,000 (Fifty Billion Naira) held equally by the Federal Ministry of Finance Incorporated and the Central Bank of Nigeria (CBN).
NEXIM Bank replaced the Nigerian Export Credit Guarantee & Insurance Corporation earlier set up under Act 15 of 1988. The agency provides export credit guarantees and export credit insurance for exports of Nigerian commodities and services within and outside West Africa.