NEXIM’s Support To Nigeria’s Non-oil Sectors Hits N40Billion, 24,139 Jobs Created -Orya

The Nigerian Export-Import Bank Bank (NEXIM) said it has assisted the non-oil sector of the Nigeria economy to the tune of N40.217 billion within the last six years.The bank said on Wednesday that about N8.61 billion was spent on agro-processing and that it has in the process created over 24,139 direct jobs for Nigerians.Managing Director, Mr. Robert Orya, who spoke to Journalists in Abuja while giving the breakdown of the disbursement, said the bank spent N16.35 billion, about 40 per cent of the total amount, in support of the manufacturing sector of the economy.

Orya said the sum of N22.7 billion and N12.544 billion was injected into the solid minerals sector and the services sector respectively.Further breakdown of NEXIM’s intervention effort shows that between August and December 2009, it financed exports worth N1 billion and sustained 606 jobs while assisting exporters to generate $8.408 million.”In 2010, NEXIM financed export trade valued at about N5.655 billion. It further provided trade guarantee of $21 million to exporters which created about 5,298 jobs and generated $73.406 million at the end of 2010.

“In the same vein, in 2011, the bank increased its export financing to N7.588 billion and provided a guarantee of $6.3 million to exporters. This resulted in the creation of 5,124 jobs in 2011 and foreign exchange earnings of $68.051 million.”In 2012, its trade finance was in the region of N7.3 billion which saw Nigeria earning $58.655 million, with 4,386 new jobs created. According to NEXIM records, in 2013, the bank assisted in financing N9.435 billion worth of exports from Nigeria which resulted again in the creation of an estimated 5, 661 jobs and foreign exchange earnings of $75.746 million.

“In the first five months of 2014, the bank spent N5.106 billion financing non-oil export and has already provided $27.3 million in guarantee to exporters. It is estimated that about 24,139 jobs have been created this year alone through the bank’s intervention in non-oil exports.”

According to the managing director, the interventions in the economy is in pursuit of the core mandate of trade finance by NEXIM.Orya said the bank is currently facilitating the establishment of a transnational shipping company in collaboration with the organised private sector associations in West and Central Africa in partnership with the Federation of West African Chambers of Commerce and Industries (FEWACCI) and Transimex of Cameroon.

This, he said, would tackle the numerous challenges faced by traders in moving goods by road within the sub-region.

“The proposed Sealink project is aimed at mitigating current non-tariff barriers and high logistics costs that have hindered the growth of intra-regional trade and competitiveness of Nigerian manufactured exports regionally.”Though initiated and largely facilitated by NEXIM, the Sealink project is essentially a Public-Private Partnership initiative and the Private Placement for the raising of $60 million is currently on-going, with application list closing on 30th June, 2014, while the shipping company is expected to commence operations within the fourth quarter of this year.”The offer is being handled by FBN Capital, Nigeria (Issuing House) and SGI, Benin Republic (placement agents).
This initiative has been endorsed by the ECOWAS Commission and is being technically supported by the African Development Bank (AfDB), the Directorate of Technical Cooperation in Africa, Maritime Organisation of West and Central Africa (MOWCA) and the Nigerian Shippers’ Council, amongst others.

Orya said NEXIM, between August 2009 and May 2014, through its facilities would facilitate the generation of estimated foreign exchange earnings of $325.25 million annually.

“With the turnaround in the bank’s performance, management ensured an appreciable return on the equity investment of the shareholders. Accordingly, a dividend for the 2010 financial year performance was declared and paid, which was the first time since 2003 when dividend was last paid. Dividend for 2011 has also been declared and paid, while that of 2012 is in the process of being approved by the Board of Directors.

“The bank in the period under review achieved a cumulative loan recovery of N1.96 billion. Loan recovery continues to be a major focus of management, with renewed and aggressive measures put in place to recover delinquent loans.

“In that regard, a Remedial Management Department has been specifically created to intensify the bank’s debt recovery drive and ensure that its portfolio remains healthy, through timely remedial actions and other measures to address the early warning signals. The ratio of NPL has reduced from 72 per cent in August 2009 to 14.95 per cent as at April 2014.

“The bank supported Nigerian exporters majorly the small and medium enterprises (SMEs) with some engaged in Greenfield projects, to the tune of N35.46 billion and issued guarantees valued at $27.30 million between August 2009 and May 2014. These interventions were in our target sectors with high growth potentials of Manufacturing, Agro-processing, Solid Minerals and Services.”Within 16 months of assumption of duty, the management had turned around the fortunes of the bank and ensured that it is a profit rather than a loss-making organisation with an impressive performance in year 2010, with an audited profit of N189.00 million as against the loss of N5.460 billion incurred in 2009.

“This profit-making trend has continued since then. It is gratifying to note that since inception of the bank in 1991, this is the first time ever that the bank has made profit consistently and consecutively for four years from 2010-2013 and declared dividends for its two shareholders – the Central Bank of Nigeria and Federal Ministry of Finance Incorporated,” he added.