Nigerian Export-Import Bank (NEXIM), on Monday, confirmed that the Central Bank of Nigeria (CBN) had approved the N300 billion-export stimulation fund.
The bank also got additional N50 billion from the apex bank for rediscounting and refinancing of loans obtained by investors from commercial banks, with a year tenure.
Roberts Orya, NEXIM managing director, gave the information while briefing Jones Onyereri, chairman, and members of the House Committee on Banking and Currency, on the activities of the bank between 2010 and 2015.
Orya, however, noted that most of the foreign loans obtained were yet to be utilised due to dissolution of the NEXIM board.
So far, the bank has facilitated foreign exchange earnings worth $387.19 million annually through its funding intervention.
From the total sum of N50,348,349,154.22 ($27.30m) injected into the economy between 2009 and 2015, the bank injected the sum of N19,157,933,886.42 into manufacturing sector; N12,382,250,923.80 into agriculture; N4,290,285,120 into solid minerals, and N14,517,579224 into services.
According to the document obtained by BusinessDay, some of the challenges facing the bank include: “non-funding of Export Credit Guarantee Fund for which a minimum of N20 billion is now required,” as well as “low level of funding under the CBN debenture to enhance the bank’s interbank funding window of which N50 billion is sought from the CBN to increase the current N1.225 billion Seed Fund.”
According to Orya, from the $200 million African Development Bank (AfDB) facility obtained in 2011 for financing of Small and Medium Enterprises (SMEs), only $33 million was disbursed due to prolonged delay in obtaining approval for Sovereign Guarantee, adding that before getting the customers, the Board was dissolved.
He said from the additional $200 million obtained from African Export Bank, only $23.1 million had so far been utilised.
While speaking on some of the successes recorded by the bank in recent times, Orya told the Committee that ongoing efforts by President Muhammadu Buhari’s administration to diversify the economy had started yielding positive results as two Nigerian companies secured multi-million dollar off-take to export gold to China.
Loratt Minerals Limited, Gusau in Zamfara State, secured off-take worth $5 million, while Issh-Ass Limited, Sokoto, secured off-take worth N100 million, which is expected to start by March 2016, on the project.
According to him, the bank has so far paid $10.7 million interest on the $200 million loan obtained from AfDB, which is expected to expire by January 21, 2021, despite non-utilisation of the facility. Out of the $50 million approved in the first tranche, $8.6 million has so far been utilised, while $11.9 million approved is yet to be accessed and utilised.
He disclosed that the bank’s single obligor was $3.6 billion, but the bank reduced it to $1.8 billion, and assured the Committee of the bank’s effort to recover the non-performing loans prior-2010, which the CBN directed should not be written-off but put into the Memorandum Account.
The NEXIM helmsman added that the bank had generated income worth N5.6 billion over the past four years, out of the N15.5 billion-investment portfolio
Onyereri, who applauded the efforts of the bank, stressed the need for it to recreate the middle-class in the country, which he lamented had gone into extinction, just as he emphasised on the replication of the German-policy thrust to revamp the economy through provision of credit facility to the middle-class.
To this end, the chairman of the Committee urged President Muhammadu Buhari to immediately constitute the Board of NEXIM bank, considering the huge credit line available, but required the approval of the Board before it could be disbursed.
While speaking, members of the Committee urged the bank to expand its coverage to entrepreneurs in the North-East region who were predominantly farmers.
