Post by Trade facilitator on May 1, 2021 20:19:39 GMT 1
NEXIM Bails Out Granite Firm In Nigeria: What You Need To Know
The Nigerian Export-Import Bank (NEXIM) has reportedly bailed out an indigenous company operating in the solid minerals sector of the economy, Dutse Granite Company Limited.
Why did NEXIM interfere to bail out the ailing company?
The company was incorporated in Nigeria in the year 2011; it continued operations until 2015 when it applied for financing from NEXIM. It is based in the Sharade Industrial Area of Kano State, Nigeria. The company has already started producing granite tiles and slabs for local use in the country, import substitution and export.
This company has been playing in the field of producing granite tiles and tile slabs as a strategy of reducing the country’s heavy dependence on foreign markets for our local tile needs. This is what the country has been asking companies and individuals to key in to save the country’s scarce foreign exchange.
Due to this reason the Nigerian Export-Import Bank ((NEXIM) interfered to bail them out when they ran into problems.
What really happened to them that caused their inability to continue production?
The Managing Director/Chief Executive Officer of NEXIM Bank, Abba Bello said “NEXIM’s objective was to ensure that projects like this brought cash flow, and in the process facilitate creation of jobs and foreign exchange earnings for the country”.
The Managing Director stated that it was in 2015 that NEXIM Bank first financed the activities of the company since it was established in 2011. He also stated that after sometime, the company encountered some problems necessitating the Bank to disburse more money to the company in 2018 and 2019 to acquire state of the art processing machinery and equipment.
The MD maintained that the major challenge facing the solid minerals sector was poor access to finance. The solid mineral sector requires expensive equipment and machinery due to the nature of their business. Their business requires long-term funding.
The Bank’s helmsman explained that since he took over the management of the bank, that he has developed targeted products to unlock opportunities in the very important sector. He said that those opportunities existing in the sector are, Contract Finance Scheme and Equipment Leasing Framework.
The Chief Executive of The Bank disclosed that “over the next few years, the solid minerals sector will increasingly realize the benefits of NEXIM’s intervention”
The Chief Promoter of the company, Mr. Mustapha Khabeeb, disclosed that if not for the intervention of Nigerian Import-Export Bank (NEXIM), the project that has gulped more than N1 billion in machinery acquisition could have been stalled.
He disclosed that the company has the best machinery for granite processing in the country, and that their products are comparable to those imported from Europe.
According to the Chief Promoter of the company, the company currently has 37 core staff, but there are other numerous workers in the value chain. They are mainly in the quarry, the distribution network and other ancillary product range.
Who are the company’s customers?
Mr. Khabeeb disclosed that the company supplies Nigeria’s major construction companies, and has export orders from Saudi Arabia, Chad, and Ghana.
Nigeria is blessed with more than 40 different types of solid minerals. I strongly believe that if NEXIM can support such a company, in the long run, Nigeria will be better for it.
A 20 ton tipper of granite costs about N130,000 today as of March 2021, so you can imaging the amount of foreign exchange this company will be saving the government by producing this granite here in the country where most of the components of granite are available.
For example, more than 40 million tonnes deposits of Talc solid mineral have been identified in Nigeria.
We of this forum are asking NEXIM to continue with the good work, but they should expand their dragnet to include many other companies that need their support too.
Imagine what could have happened to the company if the Bank broke the chain of financing after one or two bailouts? The company could have surely been dead by now.
We will soon bring to you an article on how NEXIM works, and how you can benefit from the activities of the bank. It is not rocket science, anybody can benefit from their refinancing activities.
Stay with us.
The Nigerian Export-Import Bank (NEXIM) has reportedly bailed out an indigenous company operating in the solid minerals sector of the economy, Dutse Granite Company Limited.
Why did NEXIM interfere to bail out the ailing company?
The company was incorporated in Nigeria in the year 2011; it continued operations until 2015 when it applied for financing from NEXIM. It is based in the Sharade Industrial Area of Kano State, Nigeria. The company has already started producing granite tiles and slabs for local use in the country, import substitution and export.
This company has been playing in the field of producing granite tiles and tile slabs as a strategy of reducing the country’s heavy dependence on foreign markets for our local tile needs. This is what the country has been asking companies and individuals to key in to save the country’s scarce foreign exchange.
Due to this reason the Nigerian Export-Import Bank ((NEXIM) interfered to bail them out when they ran into problems.
What really happened to them that caused their inability to continue production?
The Managing Director/Chief Executive Officer of NEXIM Bank, Abba Bello said “NEXIM’s objective was to ensure that projects like this brought cash flow, and in the process facilitate creation of jobs and foreign exchange earnings for the country”.
The Managing Director stated that it was in 2015 that NEXIM Bank first financed the activities of the company since it was established in 2011. He also stated that after sometime, the company encountered some problems necessitating the Bank to disburse more money to the company in 2018 and 2019 to acquire state of the art processing machinery and equipment.
The MD maintained that the major challenge facing the solid minerals sector was poor access to finance. The solid mineral sector requires expensive equipment and machinery due to the nature of their business. Their business requires long-term funding.
The Bank’s helmsman explained that since he took over the management of the bank, that he has developed targeted products to unlock opportunities in the very important sector. He said that those opportunities existing in the sector are, Contract Finance Scheme and Equipment Leasing Framework.
The Chief Executive of The Bank disclosed that “over the next few years, the solid minerals sector will increasingly realize the benefits of NEXIM’s intervention”
The Chief Promoter of the company, Mr. Mustapha Khabeeb, disclosed that if not for the intervention of Nigerian Import-Export Bank (NEXIM), the project that has gulped more than N1 billion in machinery acquisition could have been stalled.
He disclosed that the company has the best machinery for granite processing in the country, and that their products are comparable to those imported from Europe.
According to the Chief Promoter of the company, the company currently has 37 core staff, but there are other numerous workers in the value chain. They are mainly in the quarry, the distribution network and other ancillary product range.
Who are the company’s customers?
Mr. Khabeeb disclosed that the company supplies Nigeria’s major construction companies, and has export orders from Saudi Arabia, Chad, and Ghana.
Nigeria is blessed with more than 40 different types of solid minerals. I strongly believe that if NEXIM can support such a company, in the long run, Nigeria will be better for it.
A 20 ton tipper of granite costs about N130,000 today as of March 2021, so you can imaging the amount of foreign exchange this company will be saving the government by producing this granite here in the country where most of the components of granite are available.
For example, more than 40 million tonnes deposits of Talc solid mineral have been identified in Nigeria.
We of this forum are asking NEXIM to continue with the good work, but they should expand their dragnet to include many other companies that need their support too.
Imagine what could have happened to the company if the Bank broke the chain of financing after one or two bailouts? The company could have surely been dead by now.
We will soon bring to you an article on how NEXIM works, and how you can benefit from the activities of the bank. It is not rocket science, anybody can benefit from their refinancing activities.
Stay with us.
