The Nigerian Export-Import Bank (NEXIM) has concluded a pact with Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). NEXIM disclosed this in a statement.
Abba Bello, Managing Director (MD), NEXIM, Abba Bello, signed the instrument of the agreement on behalf of the bank while the Director-General, SMEDAN, Dr Dikko Radda, signed for his agency.
Why NEXIM and SMEDAN partnered
The MOU, according to a statement from NEXIM, is aimed at promoting synergy between the two institutions towards capacity building of Nigerian SMEs. This, it stated, would help to boost their contributions to exports and enhance formal trade.
More so, the agreement aims at promoting the export of locally manufactured products by Small and Medium Enterprises (SMEs).
According to the statement, the agreement is structured in a manner that would provide the capacity to assist SMEs to implement the required corporate structures. This would position these SMEs to benefit more from government incentives towards increasing their productivity and promoting economic diversification and inclusive growth in line with the Economic Recovery and Growth Plan.
The statement from the bank reads in part, “The MOU states that the two institutions shall jointly ensure that more Micro, Small and Medium Enterprises benefit from the African Growth & Opportunity Act initiatives of the United States.
“Both institutions will also promote technical capacity of MSMEs through workshops in the six geo-political zones of the country and also identify export ready entrepreneurs for possible funding.”
NEXIM had facilitated a $1 billion trade pact in which Nigerian exporters was poised to benefit in. The Memorandum of Understanding (MoU) was signed during the inaugural Intra-African Trade Fair in Cairo, Egypt.
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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.
About NEXIM and SMEDAN
NEXIM was established by the Federal Government as an export development bank to promote the diversification of the Nigerian economy by offering finance, risk management and trade facilitation services to exporters.
On the other hand, SMEDAN was established by the SMEDAN Act of 2003 to promote the development of the MSME sector of the Nigeria Economy. The Agency positions itself as a One Stop Shop for MSME Development.