By Haruna Salami
The Managing Director of Nigeria Export Import Bank (NEXIM), Abba Bello has observed that the major problem of exporters is the paucity of funds, adding that banks are usually reluctant to finance export transactions particularly at the pre-shipment stage because of the higher risk of default involved
He made the assertion while speaking with journalists after an interactive session between his bank and Senate Committee on Banking, Insurance and other financial institutions at the National Assembly.
“We gave the committee an update on what we are doing, what our mandate is and what our challenges are to meet our objectives of being the development bank in charge of funding of non-oil export out of Nigeria.
He noted since the challenge of the bank is funding, they have done much in that direction by setting a target to grow the balance sheet of the bank to over a trillion dollars by the end of 2022. “We believe that is the size of the balance sheet we in the coming 2 or 3 years to be able to be impactful in financing non-oil export out of Nigeria.
“You are all aware that Nigeria has signed up the Africa continental free trade agreement. Now the race is to be manufacturing centre of Africa. For us to realise that we need to fund our various sectors that would likely be the supplier of products into Africa.
In another development, the Managing Director of Nigeria Deposit Insurance Corporation (NDIC), Umaru Ibrahim has applauded the interaction of the corporation and the Senate committee on Banking, Insurance and other financial institutions.
Ibrahim noted that such periodic interaction will enhance better understanding of the NDIC by the upper legislative chamber, pointing out that the meeting has offered them the opportunity to interact with members of the committee with the view to understand each other for a better working relationship that will help in building the nation’s financial institutions.
According to him the committee understood and appreciated the role of NDIC in contributing to the stability and safety of the banking system in Nigeria and the challenges the banking system faces as well as how they are poised in tackling those challenges.
We are repositioning ourselves to meet emerging challenges such as new products and services coming into the market.