MON, FEB 03 2020-theG&BJournal– Mr. Abba Bello, the managing director, Nigerian Export Import Bank (NEXIM) made the case for the South South states in Nigeria with huge non-oil export potentials, which could be developed to boost export earnings, create more jobs and promote economic growth.
Harnessing these resources towards creating a well-diversified economy that is resilient in the wake of global economic shocks is the focus of his presentation when he met with stakeholders in Asaba Delta State recently for the Exporter Enlightenment Forum organized for the South-South region, with the theme “Maximizing Export Potentials in the South-South Region for Economic Growth”.
NEXIM is particularly concerned that the South-South had not fully benefited optimally from its intervention programme, hence the need for this Exporter Enlightenment Forum.
‘’ We therefore call on the Delta State Government and indeed all States of the South-South Region to key into our Export Development Programme to boost their economic potentials and promote the rapid development of the Region,’’ Bello said.
‘’ We are also desirous of working with State Governments/Regional Authorities as a deliberate strategy towards promoting regional industrialization and economic diversification for sustainable and inclusive development in the country. We are therefore eagerly looking forward to working with the organised private sector/trade associations and state governments of the South-south region to boost the Bank’s funding intervention in the region.’’
Bello noted that ‘’NEXIM’s objective is to increase its funding intervention in line with the Economic Recovery and Growth Plan (ERGP) to: existing exporters to move up the export value chain, and attract investment/funding support to the underserved, but key sectors of the economy with high export potentials.
South South states Resources
Economy watchers are baffled at the extent of untapped resources in the region and the little or no efforts made by the governors of the states in the region to exploit the wealth to boost their economic potentials and promote the rapid development of the Region as well as enhance living standards which is among the lowest in the country.
Currently, it is the worst performing of the six geo-political zones in the country with astonishing unemployment rate.
According to recent National Bureau of statistics data, 5.38m people are unemployed in the region which has an estimated labour force of 16.7 million persons. This is despite the billions of Naira collected as Federal Allocations. Rivers and Akwa Ibom, two of the richest states in the country recorded a whopping 36.4% and 37% respectively in the unemployment rate.
The region is rich in agricultural products such as Cashew, Cassava, Cocoa, Corn, Plantain, Rubber, Palm Oil, Yam, Rice, Beans, Coconut, Jute and fruits, Solid Minerals, including Limestone, Coal, Zinc, Tin, Manganese, Lead, Limestone, manufacturing potentials in Timber, Textiles Services as well as Hospitality Industry, Tourism.
According to Bello, ‘’the point of emphasis is that Nigeria is so blessed with many other resources such that our economic progress need not be tied to the vagaries of the global oil market. Nigeria is a leading producer of several commodities, which feed into the global economic value chain, generating billions of dollars annually.’’
‘’Besides, Nigeria has at least 44 solid minerals in commercial quantities spread across every state of the country, which are largely untapped, while our services sector has witnessed phenomenal growth over the years. What is therefore required is the concerted efforts to harness these resources towards creating a well-diversified economy that is resilient in the wake of global economic shocks.’’
State/Regional Export Development initiative
In promoting the State/Regional Export Development initiative, the NEXIM launched an Export Development Fund to provide a dedicated fund of at least N1bn for each State, counterpart funding by the State/Regional Authority (optional) and a medium to Long-term funding up to 9-year tenor.
It also made provision for an all-in single digit rate of 9% maximum, facilities to be availed essentially by private sector companies/special purpose vehicle promoted under a PPP framework as well as facilities strictly for enterprises with minimum export contents/ identified export potentials of 50% of production capacity/trading volume
The scheme also has components for the promotion of commodity aggregation and backward integration under an Anchor Borrower Arrangement & support for domestic export value chain and targets projects in sectors that impact women and youth / projects with deliberate focus on women / youth empowerment programmes in the export value chain.
The States/Regional Export Development Initiative is a medium to long term strategic plan to stimulate and increase deliberate funding intervention in the non-oil sector.
According to NEXIM, the strategy is predicated on the PAVE philosophy, that is Produce, Add Value & Export and is geared towards broadening the country’s export basket, promoting and enhancing value-added exports, increasing the contribution of non-oil exports to total exports and contributing to the implementation of economic policies like the NIRP, ER&GP, Agricultural Promotion Policy and the Mining Roadmap.
Its broad objective is the facilitation of export related industrialization and formalization of trade, attracting and incentivizing new / additional investments in the non-oil export sector, promoting technology transfer and adoption and stimulating job and wealth creation as well as diversification of revenue base.
NEXIM also pointed the South South states attention to the huge opportunities about to unfold with coming of the African Free trade agreement (AfCFTA) and urged them to align their objectives to take advantage of the ‘’enormous opportunities.’’
The free trade area, is a single market of about 1.2billion people with a combined GDP of about $3.5trillion capable of providing enormous trading opportunities for SMEs and position Nigeria to attract investments, particularly within the context of the regional and global value chains.
‘’ I will therefore expect every state here present to use the opportunity of this event to highlight their economic potentials towards attracting investments, particularly into the non-oil export sectors,’’ the NEXIM boss said.
NEXIM became a signatory to AfCFTA long before Nigeria became involved and has so far allocated about 60% of its intervention to support intra-African trade while at the same time promoting several initiatives, targeted at facilitating regional trade.
twitter:@theGBJournal|email: info@govandbusinessjournal.com.ng|
