Post by Trade facilitator on Dec 21, 2020 10:49:04 GMT 1
Nigerian Export-Import (NEXIM) Bank Signs MOU with Yobe State on Export Products Development
The Nigerian Export Import Bank (NEXIM) is an export credit agency in Nigeria established in 1991 by the Federal Government of Nigeria and the Central Bank of Nigeria.
The bank was established by the Federal Government of Nigeria with Act 38 of 1991 to replace the Nigerian Export Credit Guarantee and Insurance Corporation. Its main function is to provide export credit insurance for exports of Nigerian commodities and services within and outside West Africa sub-region.
In order to fulfill one of the mandates given to it, which is to promote non-oil development in the country, the Nigeria Export-import bank has recently signed a memorandum of understanding (MOU) with the Yobe state government in the northern part of the country.
They are to promote sustainable economic development in Yobe state by facilitating export related industrialization and the promotion of investments in areas that would utilize local resources that are abundant in the state.
What a beautiful synergy, the bank is ready to harness the potentialities that exist in many states of the federation, not only the government of Yobe state. There are so many exportable agricultural products in the state. The bank has stated that to drive economic diversification, it has tailored products for each state. It has mapped out one product project per state with the sum of N1bn per state under the export development fund. This is to support the export value chain in the 36 states of the federation and Abuja the federal capital territory. Exporters will access this fund easily at a single digit interest rate.
The terms Trade credit insurance, business credit insurance, export credit insurance, or credit insurance are all talking about the same issue. They are all insurance policies and risk management products offered by private insurance companies and government export credit agencies to business organizations wishing to protect their accounts receivables from loss due to credit risks such as protracted default, insolvency or bankruptcy.
Trade credit insurance can include a component of political risk insurance which is offered by insurers to insure the risk of non-payment by foreign buyers due to currency issues, political unrest, expropriation or even war.
In 2014, it had a capacity of $39.5 billion in credit and securities for Nigeria’s non-oil exports.
The Executive Director, Business Development of NEXIM, Hon. Stella Okotete hinted that the state export development programme is to be implemented in collaboration with the state governments. They are to set up Specialist Purpose Vehicles (SPVS) registered as corporate entities to source for funds from NEXIM at a maximum interest rate of 9%.
The honorable commissioner for the ministry of Commerce and Tourism, Alhaji Barma Shetima that represented the state governor expressed the Yobe state government’s preparedness to harness their comparative advantages in sesame seed and Gypsum processing plants. For ages local exporters have been sourcing their Sesame seeds from Damaturu in Yobe state.
The economic impact of the establishment of an avenue for processing Sesame seeds and Gypsum for extra value addition in the export chain is very enormous. The state is bound to reap huge benefits in terms of improved revenue to the state and creation of jobs for the teeming youths in the state.
The Managing Director of the Bank reiterated the enormous gain both the state government and Nigerian nation will gain from the increased revenue to the state and the huge inflow of foreign exchange to the national economy.
There is no state in the Federal Republic of Nigeria that does not have agro allied products in abundance that they have economic advantages above others in their locality. This programme is for every state including Abuja and it is for exporters to avail themselves of this wonderful opportunity to make money in the new year.
The Nigerian Export Import Bank (NEXIM) is an export credit agency in Nigeria established in 1991 by the Federal Government of Nigeria and the Central Bank of Nigeria.
The bank was established by the Federal Government of Nigeria with Act 38 of 1991 to replace the Nigerian Export Credit Guarantee and Insurance Corporation. Its main function is to provide export credit insurance for exports of Nigerian commodities and services within and outside West Africa sub-region.
In order to fulfill one of the mandates given to it, which is to promote non-oil development in the country, the Nigeria Export-import bank has recently signed a memorandum of understanding (MOU) with the Yobe state government in the northern part of the country.
They are to promote sustainable economic development in Yobe state by facilitating export related industrialization and the promotion of investments in areas that would utilize local resources that are abundant in the state.
What a beautiful synergy, the bank is ready to harness the potentialities that exist in many states of the federation, not only the government of Yobe state. There are so many exportable agricultural products in the state. The bank has stated that to drive economic diversification, it has tailored products for each state. It has mapped out one product project per state with the sum of N1bn per state under the export development fund. This is to support the export value chain in the 36 states of the federation and Abuja the federal capital territory. Exporters will access this fund easily at a single digit interest rate.
The terms Trade credit insurance, business credit insurance, export credit insurance, or credit insurance are all talking about the same issue. They are all insurance policies and risk management products offered by private insurance companies and government export credit agencies to business organizations wishing to protect their accounts receivables from loss due to credit risks such as protracted default, insolvency or bankruptcy.
Trade credit insurance can include a component of political risk insurance which is offered by insurers to insure the risk of non-payment by foreign buyers due to currency issues, political unrest, expropriation or even war.
In 2014, it had a capacity of $39.5 billion in credit and securities for Nigeria’s non-oil exports.
The Executive Director, Business Development of NEXIM, Hon. Stella Okotete hinted that the state export development programme is to be implemented in collaboration with the state governments. They are to set up Specialist Purpose Vehicles (SPVS) registered as corporate entities to source for funds from NEXIM at a maximum interest rate of 9%.
The honorable commissioner for the ministry of Commerce and Tourism, Alhaji Barma Shetima that represented the state governor expressed the Yobe state government’s preparedness to harness their comparative advantages in sesame seed and Gypsum processing plants. For ages local exporters have been sourcing their Sesame seeds from Damaturu in Yobe state.
The economic impact of the establishment of an avenue for processing Sesame seeds and Gypsum for extra value addition in the export chain is very enormous. The state is bound to reap huge benefits in terms of improved revenue to the state and creation of jobs for the teeming youths in the state.
The Managing Director of the Bank reiterated the enormous gain both the state government and Nigerian nation will gain from the increased revenue to the state and the huge inflow of foreign exchange to the national economy.
There is no state in the Federal Republic of Nigeria that does not have agro allied products in abundance that they have economic advantages above others in their locality. This programme is for every state including Abuja and it is for exporters to avail themselves of this wonderful opportunity to make money in the new year.
