The Nigerian Export-Import Bank (NEXIM) on Tuesday disclosed that a N36 billion Export Development Fund has been launched bank and to be disbursed to targeted export-oriented projects in the Small and medium-sized enterprises (SME) sector across the country.
The Managing Director/ Chief Executive of the bank, Mr Abba Bello who disclosed said this in Akure during the exporter enlightenment forum for South West region held in Akure, the Ondo state capital, said a
minimum of N1billion will be disbursed to every state of the Federation to targeted export-oriented projects in the SME sector,
Bello said that ” As the nation’s Export Development Bank, the Nigerian Export-Import Bank (NEXIM), is in the vanguard of promoting economic diversification, towards increased jobs creation and foreign exchange earnings for the country.
” In this regard, and in line with the Zero Oil Plan of the federal government, which seeks to develop at least one exportable commodity in every state of the federation, we have launched the State Export Development Fund.
“Under this programme, we have earmarked a minimum of N1billion for every state of the federation to be disbursed to targeted export-oriented projects in the SME sector, towards crowding in investment and promoting regional industrialization and economic development.
“This fund is also expected to support the various states to benefit from the opportunities provided by the African Continental Free Trade Agreement (AfCFTA) to which Nigeria is a signatory.
” As you may all be aware, the AfCFTA, which commenced in January 2021 comes with enormous benefits, including a borderless market of about 1.2 billion people, with a combined GDP of about $3.4trillion.
” It therefore, offers our SMEs, particularly those engaged in cross-border trade, the opportunity to increase their sales under a more liberal market condition.
“This scheme also seeks to corporatize and onboard our informal exporters into the formal sector, and through this capture the huge volume of informal trade which has been estimated at about four times the value of recorded trade.
“While our intervention under the State Export Development Programme is targeted mainly at export-oriented projects promoted by the private sector, the State governments have a major role to play towards creating an enabling environment for the effective utilization of the fund, particularly in such areas as land allocation, issuance of permits and other necessary support.
“We have already commenced discussions with some state governments on this scheme and we hope to continue the engagements with all the state governments present here at this forum.
“Aside from the State Export Development Programme, NEXIM also offers other intervention schemes, which include the Women and Youth Export Facility (WAYEF), which was recently launched as a financial inclusion strategy for the vulnerable groups.
” We also have the N500bn Non-Oil Export Stimulation Facility, which is targeted at the medium and large-scale exporters”
Bello lamented that ” it is rather a paradox that despite our huge human and natural resource endowments, Nigeria remains a mono-product economy, with the crude oil sector contributing about 70% of government revenue and about 90% of export earnings.
“Nigeria has over 44 solid minerals in commercial quantities, found all over the country, largely unexploited. Our services sector has also grown over the years, contributing over 50% of our Gross Domestic Product, with sub-sectors like the creative economy, professional services and the Information and Communication Technology (ICT), now featuring prominently
“Too often, the country has been confronted with challenges arising from the downturn in the global oil market, manifesting in sharp drop in fiscal revenues, rapid depreciation of the Naira, unfavourable balance of payment position and high inflation amongst others, which ultimately leads to the collapse of industries, high unemployment and increased poverty, as is currently being witnessed.
” These challenges predate the Covid 19 Pandemic and has only been exacerbated by the global health crisis.
“The point of emphasis is that our country is so blessed, and our economy need not be tied to the vagaries of one commodity, which contributes less than 10% of our Gross Domestic Product.
Also speaking, the Executive Director, NEXIM Business Development, Mrs Stella Okotete said the bank came to Ondo State because of the export potentials available in the state.
She expressed the bank readiness to partner with the southwest governments to develop the export capacities in the region.
Governor Rotimi Akeredolu said that Governors in the Southwest are steadily working together in the Agriculture sector through the formation of the Southwest Agric Company (SWAgCo).
According to the Governor, SWAgCo is a registered company under the Oodua conglomerate which was created for effective exploration of agricultural resources in the region.
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