NIGERIAN Export-Import Bank (NEXIM) issued credit facility of about N2.3 billion to the non-export sector of the economy between January 2016 and February 2017.
Acting Managing Director of NEXIM, Bashir Ali confirmed this in Abuja on Tuesday when he accompanied members of the House of Representatives Committee on Banking and Currency who were on an oversight visit to an export furniture factory which got a N1.2 billion equipment facility.
Giving a breakdown of the loan disbursements, Wali said agricultural sector had the bulk of the intervention even though other sectors like the manufacturing and the solid minerals also received significant patronage.
“About 46 percent (N1.058bn) of our intervention went to Agriculture/Agro-processing, while Manufacturing, Solid Minerals and Services received 26 percent (N605.13m), 11 (N240.00m) percent and 17 percent (N400.00), respectively” he said.
He also disclosed that Central Bank of Nigeria (CBN) recently approved the two funding schemes for which it appointed NEXIM as the Managing Agent.
The first one was the N500 billion export stimulation facility and another N50 billion rediscounting and refinancing facility, which are part of efforts to boost investments in the non-oil export sector, the.
On the N1.2 billion facilities to Alibert, Ali said the bank was committed to supporting local entrepreneurs willing to produce The credit facility was extended between 2013 and 2015, quality products and market them.
“This is the type of intervention that we believe will not only bring employment but improve Nigeria’s non-oil foreign exchange earnings”, said NEXIM bank MD.
He added “NEXIM funded Albert with equipment, finance and working capital and the end result of that funding is what you are seeing here. They operate with 90 per cent local manpower content and the strategy is to build capacity at the local level, employ people within the immediate environment to ensure that people are gainfully employed.”
Also speaking during the visit, Mr. Jones Onyereri, Chairman of the Committee commended the management of Alibert Products Nigeria, a furniture industry, for using local content manpower for production.
He expressed the committee’s satisfaction with the company in its effort to engage the local populace, saying that it would go a long way in reducing the unemployment rate in the country.
He also expressed optimism that with the company’s rate of production, it would be able to pay back the facility granted to it through the NEXIM bank.
“We are impressed for what we have seen; it gives us the assurance that indeed this facility will be paid back and that we are also getting value in terms of local content.
“One, in terms of human capacity, because you can see from the testimony they (company) have given that they engage people from the immediate community.
“The company engages them and trains them; it has added double value because once they leave here they can stand on their own.
“You know in Nigeria, once one person is properly fed, you are invariably feeding 10 other family members; so for me, that makes sense
“Then look at the number of people that they have employed within a short period, which means that as they keep expanding, they will employ more people
On what the committee would do in driving government’s push to re-position the economy, Onyereri said the committee would ensure it took its oversight function duties seriously
He said the government was geared towards the non-oil sector as it was the avenue where a major yield on export proceeds would be gotten.
On Forex, he said the committee would ensure that the company was able to access foreign exchange to enable it to enhance its business.
“This is the type of intervention that we believe will not only generate employment but will also improve upon the non-oil foreign exchange earnings of our country.
“We will urge all other entrepreneurs to follow this example, we are here to give support to those who are in need and those who will produce qualitative products and market them effectively.
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