Export-import trade is crucial for Nigeria’s economic growth as it facilitates access to foreign exchange, expands market access, promotes technological transfer, and creates employment opportunities. It also enables specialization and efficiency gains through international trade, leading to increased productivity and GDP growth. No soothsaying is needed to recommend that Nigeria needs these. Hence, the relevance of the Nigerian Export-Import (NEXIM) Bank.
NEXIM Bank is Nigeria’s official Export Credit Agency (ECA). Since its establishment in 1991, NEXIM’s primary role has been to facilitate and promote Nigeria’s non-oil exports by providing financial and risk-bearing services, as well as trade and market information. It aims to diversify the Nigerian economy by reducing its reliance on oil exports and supporting various sectors like agriculture, manufacturing, and solid minerals to become export-oriented.
NEXIM Bank’s exclusive services are vital for fostering successful export-import transactions, empowering Nigerian businesses to thrive in the global market. Under its current Managing Director, Mr Abba Bello, NEXIM has been proactive at fulfilling its purpose.
NEXIM offers a wide range of services focused on promoting and financing non-oil exports in Nigeria. These services include various credit facilities, insurance, and guarantees to support exporters in accessing funding and managing risks. Most of its offerings are loan facilities targeted at encouraging export activities. They include the export development facility, trade finance facility, Nigerian Creative Arts & Entertainment Industry loans, women and youth export facility, small and medium enterprise export facility (SMEEF) and the NCDMB fund for content managers.
Without prejudice to the exportation facilities, Nigerian Export-Import Bank also offers loans to help businesses procure raw materials and other inputs that will facilitate export production. There’s the foreign input facility for procuring foreign-sourced materials and its alternate version; local input facility. A stocking facility, majorly designed for businesses that may need to procure production machinery, is also available. None of these offerings have changed under Mr Bello’s administration.
NEXIM Bank’s services do not only provide loans for individual businesses. Rather, there are also arrangements for guaranteeing loans provided by other banks for the promotion of export activities. One of such is the rediscounting and refinancing facility curated to help deposit money banks provide pre- and post-shipment finance to exporters. NEXIM also goes as far as providing insurance for exportation businesses to cover events of failed contracts/transactions.
Through its unique offerings, NEXIM plays a crucial role in empowering Nigerian exporters by providing financial and advisory support, specifically tailored to address the challenges and opportunities within the export sector. The bank offers various facilities like direct lending, export credit guarantees, and insurance, as well as assistance with foreign exchange needs for importing inputs. Furthermore, NEXIM actively engages in capacity building and market development initiatives to enhance exporters’ competitiveness and access to global markets.
Equally, NEXIM Bank supports Nigerian importers, primarily through its Foreign Input Facility, which provides loans for importing raw materials, machinery, and other components needed for export-oriented production. It also offers expert advice on import regulations and compliance. Additionally, NEXIM facilitates smooth customs clearance and logistics for importation of raw materials.
Expectedly, several Nigerian businesses have experienced significant growth and success through the support of the Nigerian Export-Import Bank (NEXIM Bank). These businesses, operating in diverse sectors like agriculture, manufacturing, and creative industries, have benefited from NEXIM’s export financing, capacity-building programs, and other specialized services.
For example, Cibi Nigeria, a granite and marble polishing company, and various manufacturing firms in the cement and furniture sectors, have generated substantial foreign exchange earnings with NEXIM’s assistance. Furthermore, NEXIM’s focus on women and youth empowerment through initiatives like the Women and Youth Export Development Fund (WAYEF) has also fostered economic inclusion and growth within the country.
Retrospectively, NEXIM’s offerings aimed at boosting export capacity, diversifying Nigeria’s export basket, and facilitating access to international markets go a long way in ensuring that the Nigerian economy stays up and running. Under the astute guidance of Mr Abba Bello, NEXIM Bank continues to show its commitment to fostering export transactions by all possible means.
From all-stage funding insurance to expert advisory and logistic support, Nigeria’s Export-Import Bank offers full proof support to exportation activities. With this, there is no doubt that NEXIM’s exclusive services are a key driver of Nigeria’s export-import success, enabling businesses to thrive in the global market.
