In order to boost exportation of agricultural products, the Nigeria Export-Import Bank (NEXIM) has disclosed its intention to raise N37 billion for Nigeria’s 36 states and the Federal Capital Territory (FCT). The Bank’s Managing Director, Abubakar Bello who made the disclosure, said the fund is to encourage the development of agriculture.
According to Bello, each state and the FCT will get a N1 billion each. He said the money would be disbursed as credit facility at a single-digit interest rate, with the amount to be increased when the need arises.
Why FG is shifting focus on agriculture
It would not be erroneous to say the Nigerian economy is experiencing a paradigm shift. The Nigerian Government has over the years been shifting focus from its decades-long dependence on oil in order to open its economy up to diversification. This can be attributed to the unstable price of crude in the international market.
Reports have suggested that the country’s economic recovery plan is solely based on six priority sectors: agriculture, manufacturing, and solid minerals, including iron, gold, and coal.
In recent times, Nigeria is placing a renewed focus on the agricultural sector as the government seeks to revive an under-performing economy. With this, the Nigerian government is aiming at providing jobs, and address chronic food insecurity in parts of the country.
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 which 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.