NEXIM Seeks Improved Funding to Boost Industrialisation

21 Nov 2012

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MD, NEXIM, Mr. Robert Orya

Obinna Chima
  In order to facilitate the country’s industrialisation, the Nigerian Export and Import Bank (NEXIM) has stressed the need for enhanced capitalisation.

Managing Director, NEXIM, Mr. Robert Orya, made this call in an interview with journalists during a visit by members of the House of Representatives Committee on Banking and Currency to the factory of Beloxxi Biscuits Limited, Agbara, Ogun State Tuesday
Beloxxi was among the firms that benefitted from the NEXIM intervention fund.

Specifically, Orya said that with N250 billion, NEXIM would be able to contribute more to the growth of industries in the country.

He said: “We have to look at the prospect of trade growth in Africa and in Nigeria looking at the size of the economy. If you give me (NEXIM) N250 billion, I can make a lot of impact considering the size of our economy. Looking at the non-oil sector, such fund will be enough to stimulate growth.”

According to him, currently, NEXIM has a balance sheet of less than N50 billion.

“What industrialists in Nigeria need is long term funding at low cost and I think that is what is required for us to jumpstart our industrialisation. I believe that NEXIM is in a very vantage position to be able to give those kinds of funds and be able to do more than what we have done.

“We are a profit-making organisation as well as a Development Finance Institution (DFI) because we have two shareholders – the Central Bank of Nigeria (CBN) and Federal Ministry of Finance. Apart from getting equity contributions from these two shareholders, we also use our balance sheet which is not on the sovereign guaranty of Nigeria, to avail commercial lines of credits from other EXIM banks in the world,” the NEXIM boss explained.

He commended the management of the Beloxxi Biscuits, saying that the company had been able to create huge number of jobs.

Earlier, Chairman, House Committee on Banking and Currency, Mr. Jones Chukwudi Onyeriri, who said the visit was part of the lawmakers’ Oversight Functions, maintained that the committee was also out to ensure that NEXIM funds were properly utilised.

“We had issues in the past with NEXIM, before the new management came on board. These issues bordered on very huge loan portfolio. Amongst others, there was also lack of visibility of the bank. In our legislative agenda, our primary responsibility is to make sure that issues of the past do not reoccur.

“In other to forestall such reoccurrences, it became important that we should follow up with issues of intervention and loans. In other to do that, it is important that we get to the people who have gotten these loans to know what they have been able to do with the loans, and if the loans are performing, to find out if there will be need for them to get more funds, and if they are not performing, to know whether to put more stringent methods to make sure they pay the loans,” the lawmaker declared.

Tags: Business, Nigeria, Featured, NEXIM

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