Abba Bello, managing director of Nigeria Export-Import Bank (NEXIM), says the bank has disbursed N68.01 billion to 68 Nigerian entrepreneurs, in the last three years under its export development fund.
Speaking with journalists in Abuja on Thursday, Bello said NEXIM is working to disburse another N30.86 billion to an unspecified number of beneficiaries.
On the Africa Continental Free Trade Area (AfCFTA), he said the bank is focusing on three key areas in helping the country get ready to trade under the Africa Continental Free Trade Area (AfCFTA).
These include revamping inland waterways operations to support hinterland trade, facilitating transportation of goods by road, and providing financing for small and medium enterprises (SMEs).
There are concerns that small enterprises may not compete favourably with their peers on the continent when Nigeria commences trade under AfCFTA.
But the MD said helping SMEs thrive under AfCFTA is a concern of the bank.
“We have collaborations with SMEDAN, other non-oil sector trade organisations in our inter-agency collaboration,” Bello said.
“One of our major focuses is SMEs, SMEs are one of the biggest employers of labour. To support them we have to develop them. The trade value chain that ends up in export is not supported because they don’t have corporate governance, they don’t have collateral.”
The Nigerian Office of Trade Negotiations (NOTN) has not begun trading under AfCFTA because the treaty is not yet backed up by law. Trading under treaty on the continent commenced on January 1
“As part of our trade facilitation role and towards enhancing Nigeria’s readiness under AfCFTA the bank is spearheading the following initiatives; The sealink project aimed at fostering regional trade connectivity, facilitating inland waterways operations to support hinterland trade, and bulk commodities exports, especially of solid minerals,” Bello said.
“Efforts are being intensified with NIWA, Nigerian Navy and other private sector partners to ensure commencement of operations within Q2, 2021.
“Inter-State Road Transit Scheme designed to facilitate the transportation of goods by road across Customs territories free of duties, taxes, and restrictions while in transit in line with ECOWAS protocol.
“NEXIM is the national guarantor under the scheme whose role is to issue insurance bonds to mitigate the risk of diversion.
“Factoring Services are being promoted to engender financial inclusion and provide alternative trade financing support for MSMEs.”
(The Cable)
