Post by Trade facilitator on Dec 20, 2020 20:27:57 GMT 1
[HASH]NEXIM Bank to disburse $1bn to Nigerian exporters, others, to promote Intra-African trade and investments
One of the major problems facing Nigerian Exporters today is lack of information and exposure. Quite a number of our exporters are either stuck or are completely unable to source for cheap finance that will enable them to start their export business.
Sourcing funds directly from commercial or other deposit banks for export can be very expensive making the export business unprofitable due to the high cost of the fund. This has led to closure of many export businesses and the inability of other intending businessmen to abort the idea.
The cost of finance in Nigeria today is so high that it is very difficult to borrow money from commercial banks at such exorbitant rates and make enough profit to sustain the business under very harsh economic conditions facing the country and other nations of the world today.
It is because of this problem that the Federal Government of Nigeria through several of its agencies has created special funding windows for exporters. There is no way a country can become great among the nations without a viable export oriented economy.
Look at China today, it is the largest trading nation in the world, its export potential is intimidating, the country has surpassed all other nations. You can see that China exports its goods to almost all the nations in the world. Imagine the volume of foreign exchange that it earns yearly. China exports various types of finished technical goods and even services. Their engineers are all over Africa building roads and bridges.
If you critically look at the foundation of this success you will discover that the government had laid a deliberate and solid foundation for this success. This type of success does not come by wishes, you must do something deliberate and solid.
Because of this, the Federal Government of Nigeria has consistently been putting plans and actions in place to increase the rate of success in export business. The government has created several agencies to help exporters both in accessing cheap finance and logistics.
One of it is this programme: NEXIM Bank to disburse $1bn to Nigerian exporters, others, to promote Intra-African trade and investments. You read correctly, the Nigerian Import Export Bank has been funded to be able to disburse one billion dollars for export and other businesses to promote trade and investment among African nations. The question is, how many exporters even know the existence of this facility?
This programme was set up in 2018, what is our level of participation to date? It is a kick off of its Nigeria-Africa Trade and Investment Promotion Programme (NATIPP).
This programme is a part of an agreement made between the banks (NEXIM), the African Export Import Bank (Afreximbank), the Nigerian Export Promotion Council (NEPC). It was inaugurated at the just concluded Intra-African Trade Fair (IATF) in Cairo, by Afreximbank President, Prof. Benedict Oramah.
The agreement states that AFREXIM Bank will provide a $1bn Credit Line, which will be disbursed by NEXIM to qualifying beneficiary projects and transactions of intra-African trade and investments.
There is no doubt that the government had made serious efforts in putting such facilities like this programme in place to promote trade between countries in Africa. This programme is very good and if properly nurtured and promoted as it is supposed to be, trade between African countries could really be done far cheaper than with other foreign countries.
Nigerian exporters should wake up and avail themselves of various Programmes we have been bringing to your notice and attention in this forum. Give these opportunities a trial, do not believe that it is meant only for the big dogs in the industry, it is for every exporter or those who want to come into the business.
The survival of the Nigeria’s economy rests in the hands of you the great exporters, who bring the much needed foreign currency into the economy.
One of the major problems facing Nigerian Exporters today is lack of information and exposure. Quite a number of our exporters are either stuck or are completely unable to source for cheap finance that will enable them to start their export business.
Sourcing funds directly from commercial or other deposit banks for export can be very expensive making the export business unprofitable due to the high cost of the fund. This has led to closure of many export businesses and the inability of other intending businessmen to abort the idea.
The cost of finance in Nigeria today is so high that it is very difficult to borrow money from commercial banks at such exorbitant rates and make enough profit to sustain the business under very harsh economic conditions facing the country and other nations of the world today.
It is because of this problem that the Federal Government of Nigeria through several of its agencies has created special funding windows for exporters. There is no way a country can become great among the nations without a viable export oriented economy.
Look at China today, it is the largest trading nation in the world, its export potential is intimidating, the country has surpassed all other nations. You can see that China exports its goods to almost all the nations in the world. Imagine the volume of foreign exchange that it earns yearly. China exports various types of finished technical goods and even services. Their engineers are all over Africa building roads and bridges.
If you critically look at the foundation of this success you will discover that the government had laid a deliberate and solid foundation for this success. This type of success does not come by wishes, you must do something deliberate and solid.
Because of this, the Federal Government of Nigeria has consistently been putting plans and actions in place to increase the rate of success in export business. The government has created several agencies to help exporters both in accessing cheap finance and logistics.
One of it is this programme: NEXIM Bank to disburse $1bn to Nigerian exporters, others, to promote Intra-African trade and investments. You read correctly, the Nigerian Import Export Bank has been funded to be able to disburse one billion dollars for export and other businesses to promote trade and investment among African nations. The question is, how many exporters even know the existence of this facility?
This programme was set up in 2018, what is our level of participation to date? It is a kick off of its Nigeria-Africa Trade and Investment Promotion Programme (NATIPP).
This programme is a part of an agreement made between the banks (NEXIM), the African Export Import Bank (Afreximbank), the Nigerian Export Promotion Council (NEPC). It was inaugurated at the just concluded Intra-African Trade Fair (IATF) in Cairo, by Afreximbank President, Prof. Benedict Oramah.
The agreement states that AFREXIM Bank will provide a $1bn Credit Line, which will be disbursed by NEXIM to qualifying beneficiary projects and transactions of intra-African trade and investments.
There is no doubt that the government had made serious efforts in putting such facilities like this programme in place to promote trade between countries in Africa. This programme is very good and if properly nurtured and promoted as it is supposed to be, trade between African countries could really be done far cheaper than with other foreign countries.
Nigerian exporters should wake up and avail themselves of various Programmes we have been bringing to your notice and attention in this forum. Give these opportunities a trial, do not believe that it is meant only for the big dogs in the industry, it is for every exporter or those who want to come into the business.
The survival of the Nigeria’s economy rests in the hands of you the great exporters, who bring the much needed foreign currency into the economy.
