NEXIM Bank to get 20 million dollars credit from India’s EXIM Bank

 NEXIM Bank to get 20 million dollars credit from India’s EXIM Bank
Hauwa Noroh Ali

Export-Import Bank of India (EXIM) is set to provide Nigeria Export-Import (NEXIM) Bank a US$20 million commercial Line of Credit (LOC) to support its efforts in promoting export-oriented activities in Manufacturing, Agriculture, Solid Minerals and Services (MASS) sectors of Nigerian economy.

This was expressed at the 2011 Annual Meeting of African Development Bank (AfDB) Group held in Lisbon, Portugal, which had in attendance, finance ministers, central bank governors, development finance institutions and CEOs from the institution’s 77 member countries.

Facilitating economic growth

The meeting, with the theme “Towards an Agenda for Inclusive Growth in Africa”, reviewed the Bank’s 2010 operations and its 2012 development funding portfolio, as well as challenges facing the African region in key areas such as climate change, infrastructure, private sector and governance.

Nigeria’s Trade Policy Bank and Africa’s Premier Export Development institution - the Nigerian Export-Import Bank (NEXIM) was part of Nigeria’s delegation to the AfDB’s meetings.

The meetings provided a perfect platform for NEXIM Managing Director/CEO, Mr Roberts U. Orya to hold bilateral meetings with chief executives of other development finance institutions from Africa and beyond.

The NEXIM chief, Mr. Orya in a meeting with the Chairman of Export-Import Bank of India (Exim India), Mr. T. C. A. Ranganathan, explored issues that would broaden institutional strategic partnership towards enhancing commercial exchanges between Nigeria and India as well as facilitate South-South economic cooperation and trade.

The two institutions have long enjoyed a mutually beneficial relationship which was taken to a new level in September 2007 when the Export-Import Bank of India extended an initial five million dollars Line of Credit (LOC) to Nigerian Export-Import Bank.

Joint collaboration

Beyond that, both institutions also have a joint collaboration agreement which among others provides for support of Export joint ventures involving Nigerian and Indian businesses in the framework of African Export Import Bank’s (AFREXIM bank) Export Development Programme.

The meeting also provided an opportunity for Mr. Orya to up-date Ranganathan on the level of progress made by NEXIM since the transformation process commenced in 2010.  

Relying on the spirit of the robust relationship between the institutions, Mr. Orya requested for the enhancement of the commercial line of credit for the benefit of SME projects that would require Indian technology for production and/or partnership arrangements, especially in the mining, agro-processing and manufacturing sectors of the economy.

On funding intervention to the mining sector, particularly in regard to concessional funding arrangement to support technology transfer and foreign direct investment in mini-cement plants, the NEXIM MD informed his Indian counterpart that useful discussions were ongoing with various State governments and private sector entities in Nigeria towards establishing a viable public – private- partnership arrangements.

The EXIM India chief, Ranganathan, lauded Mr. Orya for the quick transformation of NEXIM against the background of recent challenges at the Bank. He commended the support of the Bank’s stakeholders towards ensuring that the Bank plays it developmental role of trade facilitation and the development of Nigeria’s non-oil export sector.

Financing the entertainment industry

He further expressed the readiness to share his institution’s experience and expertise on film financing, in view of EXIM India’s pioneer and lead role in the financing of Bollywood films and entertainment infrastructure in India. Thus, encouraged NEXIM to
expand its menu of offerings to the entertainment industry.

He particularly commended the close and fruitful relationship between both institutions and expressed Exim India’s pride to be in partnership with NEXIM Bank.

The AfDB is Africa’s premier development finance institution established in 1964 to mobilise resources for the economic and social development of its 53 regional-member countries towards poverty and inequality reduction, and promoting sustainable growth.

The institution has between 1967 and 2010 approved 3,526 loans and grants totalling 84 billion dollars to its member countries.

It would be recalled that on May 26, the Board of Directors of the African Development Bank (AfDB) Group approved a 200 million dollars sovereign guaranteed Program for the Nigerian Export-Import Bank (NEXIM) for financing export-oriented Small and Medium-sized Enterprises (SMEs) in Nigeria

Williams