Senate Moves to Hike NEXIM Capital to N1trn

* Wants to establish Export Trust Fund, special tribunal for insurance disputes

Sunday Aborisade in Abuja

The Senate, on Wednesday, took bold steps towards strengthening Nigeria’s financial institutions through sweeping reforms that include a proposed hike in the capital base of the Nigerian Export-Import Bank (NEXIM) to N1 trillion, the establishment of an Export Development Trust Fund, and the creation of a special tribunal to resolve insurance disputes.

These were major highlights at the public hearing organised by the Senate Committee on Banking, Insurance and Other Financial Institutions on two critical bills.

The proposed legislation were the Nigerian Export-Import Bank (Amendment) Bill, 2025 and the National Insurance Commission (Repeal) and Insurance Regulatory Commission Bill, 2025.

They were both designed to fortify Nigeria’s financial ecosystem and align it with global standards.

The event, chaired by Senator Mukhail Adetokunbo Abiru, drew an array of stakeholders from across the financial, insurance, manufacturing and academic sectors. 

In his opening address, Abiru said the bills represented “a crucial step in shaping the future of Nigeria’s financial system” by modernizing outdated laws and fostering innovation-driven regulation.

He noted that the NEXIM Amendment Bill would update the 1991 Act that established the bank, while the new Insurance Regulatory Commission Bill seeks to replace the obsolete 1997 NAICOM Act. 

Both, he said, would “ensure Nigeria’s financial system becomes more transparent, competitive and globally aligned”.

According to Abiru, “Effective lawmaking is never a solitary process. We are here to critically examine both bills and ensure they align with our national goals of economic transformation and financial stability.”

In a message delivered by the Senate Chief Whip, Senator Tahir Monguno, on behalf of Senate President Godswill Akpabio, the upper chamber described the two bills as “a covenant with Nigeria’s economic future”.

Akpabio said the proposed reforms were not mere legislative exercises but instruments of national renewal.

“The NEXIM Bank is not just a bank; it is a bridge between our factories and the world. It must be empowered to lead, not just to lend.

“Similarly, the insurance sector must rise beyond routine paperwork to become a bulwark of trust and fairness in our economy,” he said.

He urged lawmakers to legislate “for posterity, not convenience”, emphasizing that history would remember the 10th Senate as one that “met the hour with clarity, courage and conviction”.

NEXIM Bank Managing Director, Abba Bello, justified the proposed amendments, stressing that the 33-year-old law had become obsolete. 

He said the bank’s current capital of N50 billion, roughly $33 million, was “grossly inadequate” to support Nigeria’s expanding export ambitions, particularly under the African Continental Free Trade Area (AfCFTA).

Bello said: “We fully support the proposal to raise the capital base to at least N500 billion, and ideally N1 trillion, to enable NEXIM to deliver on its mandate.”

He also backed reforms that would separate the roles of the Central Bank of Nigeria (CBN) from NEXIM’s board leadership, promote continuity of governance and create an export development fund to support export-oriented businesses.

Several participants echoed Bello’s position. 

The Capital Market Academics of Nigeria urged lawmakers to peg NEXIM’s minimum capital at N1 trillion instead of N500 billion, citing the stronger financial standing of peer institutions in India, China and South Africa. 

The association, in its position paper, said: “NEXIM’s undercapitalization has limited its impact and excluded it from global credit ratings,” calling for a more inclusive board structure featuring the Chartered Institute of Bankers and the National Association of Chambers of Commerce.

The Ministry of Finance Incorporated (MOFI) also supported the N1 trillion benchmark and clarified that the government’s shares in NEXIM should be held through MOFI, in line with its statutory mandate as the Federal Government’s asset-holding entity.

Similarly, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, described the establishment of an Export Promotion Trust Fund as “a masterstroke” that could transform Nigeria’s non-oil export sector. 

“This is a long-overdue innovation that will allow exporters to access funding for raw materials, logistics and capital goods,” Omosehin said. 

He further backed NEXIM’s inclusion of the insurance regulator on its board to strengthen underwriting standards and risk management.

The Nigeria Deposit Insurance Corporation (NDIC) in its position paper, called for its inclusion on the NEXIM board, citing its expertise in risk management. 

It also supported the higher capital base and demanded stricter accountability for the proposed trust fund. 

The construction and manufacturing sectors’ position paper commended the new Export Promotion Fund but urged lawmakers to ensure that building materials, construction technology and housing components were explicitly listed as eligible export items.

Deliberations also focused on the Insurance Regulatory Commission Bill, which seeks to repeal and replace the 1997 National Insurance Commission Act. 

Omosehin said the new law was designed to “reflect modern realities” by empowering the regulator to supervise digital insurance platforms, issue compliance directives and merge failing institutions when necessary.

A key feature of the proposed legislation is the creation of an Insurance Dispute Resolution Tribunal, which stakeholders described as a transformative reform that would enhance investor and consumer confidence. 

Omosehin said: “The tribunal will provide quick, affordable and professional redress to policyholders. It will restore trust in the system and encourage more Nigerians to embrace insurance.”

The bill also proposes new regulatory powers, updated board composition, stricter compliance timelines for insurance levies and a framework for regulating actuarial practice, areas stakeholders agreed were long overdue.

In his closing remarks, Senator Abiru commended all stakeholders for their depth of engagement and reaffirmed the Senate’s resolve to enact laws that will strengthen Nigeria’s financial architecture. 

He stated that: “Our goal is to produce legislation that strengthens institutions, inspires confidence and positions Nigeria’s financial system for global relevance.

“With your cooperation, we shall deliver reforms that will make our financial system not only efficient but transformative.”

If passed into law, the two bills, with their far-reaching proposals for recapitalization, the creation of a trust fund, and the establishment of a specialized tribunal, could mark one of the most significant overhauls of Nigeria’s financial regulatory framework in decades.