FG enjoins NEXIM to attain 30% non-oil sector contribution to export revenue

Zainab Ahmed, Minister of Finance

The Federal Government has urged the management of the Nigerian Export-Import Bank (NEXIM) to ensure that the contribution of the non-oil sector to export revenue increases to at least 30 per cent in the next five years.

This, it said becomes necessary to avert the threat of a mono-product economy as exemplified by the recent COVID-19 pandemic outbreak, which further underscored the need for Nigeria to widen its export basket and deepen its export market.

The directive was handed over by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, when she inaugurated the executive management of the Nigerian Export-Import Bank (NEXIM) in Abuja, over the weekend.

Mrs Ahmed charged: “In the next 5years, we would like to see a quantum leap in the contribution of the non-oil sector to export revenue to at least 30 per cent. This, I believe, is possible and the government will be willing and ready to give you the desired support to achieve this target. The threat of a mono-product economy is real, and the recent episode of the COVID-19 Pandemic has further underscored the need for Nigeria to widen its export basket and deepen its export market.”

She commended the Board, Management and Staff of NEXIM for the achievements over the past years, and added that the only way the executive management can reciprocate the confidence reposed in them by President Muhammadu Buhari on their re-appointment is by redoubling its efforts to consolidate on the earlier performance and take NEXIM to greater heights.

Mrs Ahmed noted that developments such as BREXIT and the African Continental Free Trade Agreement (AfCFTA) create opportunities that Nigerian exporters should leverage on.

In this regard, she said NEXIM should be in the vanguard of initiating and driving Key initiatives to unlock the opportunities they present, stressing that “Our expectation and hope in the next five years is to see a NEXIM Bank that will take Nigeria to the world in a similar manner with institutions like EXIM China and BNDES of Brazil.”

According to Mrs Ahmed, prior to the appointment of the present management team, the Bank had been confronted with myriad of challenges including high volume of non-performing loans, inadequate capitalisation, paucity of operational funds and loss of focus on core mandate which limited its performance.

“It is, therefore, heartwarming to note that under your stewardship the Bank has witnessed a complete turnaround in all areas of its operational and financial indices and is now on the path of growth.

“For instance, the Bank now has a healthy balance sheet, which has grown from about N63 billion in April 2017 to the current level of N250 billion. It has also recovered from a loss position of N8 billion in 2016 to sustained profitability, reaching N4.1 billion in 2021, while over N12 billion has been recovered in non-performing loans,” Mrs Ahmed stated.

She specifically commended NEXIM’s efforts towards realising the policy objectives of government in the areas of economic diversification and creation of jobs for Nigerians by attracting concessional funds into the export sector through strategic partnership as exemplified by numerous initiatives.

Some of the initiatives Mrs Ahmed highlighted include collaboration with the Central Bank of Nigeria to manage the N500 billion Non-Oil Export Stimulation Facility and the N50 billion Export Development Fund, which has now been enhanced to N150 billion owing to the excellent performance of the Fund.

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Others are: “Collaboration with Afreximbank in managing the $1 billion Nigerian African Trade and Investment Promotion Programme and the $25 million Pandemic Trade Mitigation Facility.
Collaboration with the Nigerian Content Development and Monitoring Board (NCDMB) to manage the $50O million Fund for Capacity Building and intervention for Women in Oil and Gas services sector.
Development of Factoring as a financial inclusion and trade promotion strategy for the SME sector. Development of the Sea link initiatives towards improving transport logistics and shipping services to deepen trade within the regional market. Launching of special products aimed at increasing access to funds by our SMEs as well as our women and teeming youths.”

The Minister of Finance, Budget and National Planning reiterated that these laudable initiatives and programmes implemented by the Bank under the present management were commendable and should be sustained.

She congratulated the entire Board, Management and staff of NEXIM for the re-appointment of the Managing Director/Chief Executive, Mr Abba Bello, the Executive Director, Corporate Services, Dr Bala Bello and Honourable Stella Okotete, the Executive Director, Business Development by Mr President for their second and final term of five years which commenced on April 21, 2022, noting that the reappointment, no doubt, is a testimony to the high level of professionalism and commitment with which they managed the affairs of the Bank in the last five years.

The Managing Director/Chief Executive, Mr Abba Bello in his response thanked Mrs Ahmed and pledged to redouble their efforts in realising the policy objectives which informed the establishment of NEXIM by the Federal Government.

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FG enjoins NEXIM to attain 30% non-oil sector contribution to export revenue

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