The Nigerian Export-Import Bank (NEXIM Bank) is set to provide credit facility to Nigerian exporters following its $1 billion trade facilitation pact with the African Export-Import Bank (AFREXIM Bank) for Nigeria and other West African countries.
The signing of the Memoradum of Understanding was formalized during the inaugural Intra-African Trade Fair in Cairo, Egypt.
A statement issued by the NEXIM Bank on Monday on the trade facilitation deal indicated that the MoU would be implemented under the Nigeria-Africa Trade and Investment Promotion Programme (NATIPP) to support trade and investment flows between Nigeria and other African countries.
Under the agreement, AFREXIM will provide $1 billion Line of Credit, which will be disbursed by NEXIM to qualifying beneficiary projects and transactions in support of intra-African trade and investments.
Based on the content of the MOU, the fund is provided to support growth of trade between Nigeria and other African countries with special emphasis on value addition, particularly in primary goods and commodities.
In addition, the fund will also support capital and investment flows as well as projects being sponsored by Nigerians in other countries and by implication, enhance local earnings and job creation.
Speaking during the signing, NEXIM Bank Managing Director, Abba Bello, explained that the credit facility would go a long way in boosting access of Nigerian exporters to investment capital and investment guarantee instruments, including the Small & Medium Enterprises.
He pointed out that through the trade facilitation pact, the bank would be able to promote intra-African trade and increase the volume of formal trade.
Bello explained that in implementing this programme, NEXIM Bank would be working with exporters, investment partners, other financial institutions and all stakeholders, including domestic and foreign entities to realise the NATIPP programme objectives.
