NEXIM: Need to promote regional, global trade, investment

The Nigerian Export-Import Bank (NEXIM Bank) has over the years been at the forefront of promoting regional and international trade and investment as it unravels new frontiers. DAVID AGBA reports

As a way of ensuring that it does not lose track of its mandate, the Nigerian Export-Import Bank (NEXIM Bank) has signed a Memorandum of Understanding (MoU) with the Indonesia Eximbank, which is intended to enhance cooperation and forge stronger relationships in promoting regional and global trade and investment between Indonesia and Nigeria.

The MoU intends to foster trade, technical assistance, experience and information sharing, including other investment relations in a way that would promote fi nancing, guarantees, insurance and counter trade instruments to increase transactions between Indonesia and Nigeria. Speaking during the signing ceremony, Managing Director of NEXIM, Mr. Abba Bello informed the Indonesia Eximbank team that NEXIM Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversifi cation of the Nigerian economy and deepening the external sector, particularly the nonoil export sector.

According to him, the Bank pursues this through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and fi nancial advisory services etc. Presently, the Bank’s current strategic initiatives are geared towards boosting job creation and foreign exchange earnings in the Manufacturing, Agroprocessing, Solid Minerals and Services (MASS) sectors in alignment with the efforts of the federal government to diversify the economy, create jobs and increase both the value and sources of foreign exchange earnings in the country, he added.

Mr. Bello expressed his delight that both Banks were able to quickly come to terms on the Articles of the MoU considering the brevity of time spent in the negotiations, which shows strong commitment on both sides to work towards a more mutually beneficial relationship. Furthermore, the NEXIM MD indicated that by virtue of both banks’ membership of the Global Network of Eximbanks and Development Finance Institutions (DFIs) G-NEXID, he hopes that the intentions expressed in the MoU would be much easier to pursue. NEXIM Bank has been the honourary president of G-NEXID since May 2015.

In his response, the Managing Director of Indonesia Eximbank, Mr. Dwi Wahyudi expressed his satisfaction that the two institutions have established a viable intention to forge strong collaborative relationship as signalled by the MoU. He disclosed that the Indonesia Eximbank was incorporated by virtue of Law Number 2/2009, as an export credit institution that provides export fi nancing in the form of security, insurance and consultation services. Like NEXIM, the Indonesian Eximbank supports its Government’s economic development aspirations by providing fi nancing for (a) businesses that are into production of goods and services for export; (b) viable projects that are not attractive to commercial banks but have the prospects to increase the national export base; and (c) providing assistance to overcome the obstacles facing banks or other fi nancial institutions in providing fi nancing for exporters through various export credit instruments.

Mr. Wahyudi is hopeful that the MoU signed with NEXIM Bank would spur meaningful bilateral cooperation between the two countries for the promotion of the intentions expressed in the Articles. Th is becomes more germane given the readiness of the Government of Indonesia to enhance a more mutually benefi cial economic relations with Nigeria as indicated during the offi cial visit of the Minister for Foreign Aff airs of the Republic of Indonesia, Mrs Retno Marsudi, in June this year.

Mr. Bello assured his Indonesian counterpart that NEXIM would do all within its mandate in regard to the intentions expressed in the document. Concluding, he expressed his hope that the MoU will strengthen Nigeria’s existing bilateral relations with Indonesia through increased technical assistance, promotion of nonoil export trade and other economic activities and thereby provide more support to the Government’s eff orts to diversify the economy. Th e Memorandum of Understanding between Indonesia Eximbank and NEXIM Bank is strictly limited to the expressed desires of the Parties to enhance cooperation in respect of the matters set out in the document. It is not intended to impose or create any legally binding rights or obligations on the Parties.

Th e Nigerian Export-Import Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and fi nancial advisory services etc.

In pursuit of its mandate of promoting export diversifi cation and deepening the non-oil export sector, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (Tourism, Transportation and Entertainment) (MASS) sectors. Th e Bank embraces the exchange of information on best practices in trade and project fi nance as an important value addition to its operations

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