News
NEXIM Rolls
Out Action Plan to Boost Regional Trade
Written by Ben-Bright Mkpuma, Abuja
The managing Director of Nigerian Export-Import Bank, Mr.
Roberts Orya has lamented poor patronage of the nation’s trade
policy (NEXIM) by businesses. He complained that the
institution, which is designed to deepen trade, within the
Ecowas region is grossly under-utilized.
He observed that it is shameful that Nigeria with its largest
market in the African continent is managing to survive, with
only one trade policy institution. With over N9 billion
non-performing accounts inherited by the present management. He
noted that the bank ran is facing some difficulties, while
trying to recover the loans due to poor packaging of the
credits and Partly to the recent financial crisis, which
forced most financial institutions to fold up.
Orya said the board has endorsed a five –year strategic plan,
aimed at reviving the export-import bank to attain international
standard. The bank\'s strategic plan projection was to support
the non-oil export sector in the 5-year funding intervention
that would see it commit N37 billion to non-oil exports in 2011;
N41 billion 2012; N50 billion in 2013; N63 billion in 2014 and
N94 billion in 2015....
NEXIM, supervised by the federal government agency, it was
learnt that the establishment is not funded by the government.
It is solely funded by its shareholders, who, sources say, are
presently impressed with the performance of the current
management.
Established with the mandate to deepen the non-oil sector, the
chief executive officer disclosed that the organization posted a
profit of N190 million, during the fiscal year 2010 under
review. This impressive, he added was due to compliance with the
corporate governance issue and curtailment of the deterioration
in the bank.
NEXIM 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 Government of Nigeria
and the Central Bank of Nigeria. The Bank which replaced the
Nigerian Export Credit Guarantee & Insurance Corporation earlier
set up under Act 15 of 1988, has the following main statutory
functions: -
Provision of export credit guarantee and export credit
insurance facilities to its clients, provision of credit in
local currency to its clients in support of exports,
establishment and management of funds connected with exports,
maintenance of a foreign exchange revolving fund for lending to
exporters who need to import foreign inputs to facilitate export
production, maintenance of a trade information system in support
of export business and provision of domestic credit insurance
where such a facility is likely to assist exports.
The Bank presently provides short and medium term loans to
Nigerian exporters. It also provides short term guarantees for
loans granted by Nigerian Banks to exporters as well as credit
insurance against political and commercial risks in the event of
non-payment by foreign buyers. The Bank is also the government’s
National Guarantor under the Ecowas Inter-state Road transit
programme.
The Bank’s authorized capital as at December 31 2008 was N50.0
billion with a fully paid-up portion amounting to N13.59 billion
with an outstanding balance of N36.41 billion.
The Bank funded non-oil exports
with N10.14 billion in 2010. The bank also granted risk bearing
facilities of about $27.3 million to three projects during the
period.
“In the last four years we have been able to support the non-oil
sector to the tune of N15.04 billion and we have been able to
generate over $200 million”, said the chief executive officer.
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