Nigerian Export-Import Bank (NEXIM Bank) says it is making deliberate efforts to develop an alternative source of funding for the Micro, Small and Medium Enterprises (MSMEs) operators through factoring services.
The Managing Director, NEXIM Bank, Abba Bello, disclosed this on Wednesday at the ongoing Nigeria @ 60 Exhibition of Made in Nigeria Products and Cultural Display, in Abuja.https://scudnewng.com
Reports indicated that the exhibition is organised by the Inter-Ministerial Committee on the Nigeria @ 60, in collaboration with Business Visa and Trainings Co. Ltd.
Bello, in a presentation entitled “The Fundamentals of Branding and Financing Made in Nigeria Products for Export” stated that it was developing the funding in collaboration with Afreximbank and the Factor Chain International.
“We are also working to bridge the maritime infrastructure gap, thereby improving trade connectivity for coastal and hinterland trade by facilitating the Sealink Project, expected to take off before the end of 2021.’’
He urged exporters and entrepreneurs to seize the opportunity of the products and services offered by NEXIM bank to enhance their businesses and grow Nigeria’s non-oil export basket.
In furtherance of its mandate and towards preparing Nigerian exporters for the African Continental Free Trade Area (AfCFTA), he highlighted some products and services being offered by NEXIM.
According to him, it offered N500 billion Export Stimulation Facility (ESF) being managed in collaboration with the Central Bank of Nigeria (CBN) to support export-oriented projects.
“N100bn Export Development Fund (EDF) provided to NEXIM by CBN and targeted mostly at the MSMEs,’’ he added.
The NEXIM boss further stated that its State and Regional Export Development Programme aimed at promoting one exportable product in every state of Nigeria as part of Zero Oil Plan.
In the same vain, he said it incorporated an aggregator arrangement
whereby a large-scale processor and exporter could offtake from a primary producer thereby providing finance/market access.
“Small and Medium Enterprises Export Fund (SMEEF) offers specific features to improve access to loans by SMEs towards regional trade while Women and Youth Export Fund (WAYEF) supports women and youth in export value chains.
“Project Preparation Fund is developed in partnership with Afreximbank to provide support towards presenting bankable proposals.
“Risk Bearing Services includes Credit Guarantee instrument designed to protect financiers from the risk of default by the borrower and Credit Insurance, which protects the exporter from the risk of payment default arising mainly from political risks,’’ he noted.
He said that given our current production structure and resource endowment, Nigeria had the capacity to boost its non-oil economy and enhance its export revenues towards promoting sustainable inclusive growth and development.
This, he said, would however require concerted efforts by both the government and the private sector.
He noted that government has been making efforts to improve the investment environment, through the activities of Presidential Enabling Business Council (PEBEC) while the expo was also one way to attract investment opportunities.
Recalls indicated that the nation turned 60 years on Oct. 1, 2020.
Considering the significance of the age in our journey to nationhood, President Muhammadu Buhari directed that the celebration should be made a year-long event to end in September.
