US Export-Import Bank, Nigerian counterpart sign MoU to strengthen economic cooperation, others

…Target aviation, maritime, digital connectivity, infrastructure

The Export-Import Bank of the United States (EXIM) has signed a memorandum of understanding (MoU) with the Nigerian Export-Import Bank (NEXIM) aimed to deepen collaboration and trade ties between the United States and Nigeria.

The agreement was signed by Exim President and Chair, Reta Jo Lewis, on behalf of Export Import Bank of United states, while Abba Bello, managing director/chief executive of NEXIM, signed on behalf of the Nigerian Export-Import Bank.

During the signing ceremony, Lewis highlighted increased opportunities for U.S. exports to Nigeria in critical minerals, clean energy, aviation and infrastructure.

Also, NEXIM MD/CE, Abba Bello said that the partnership was a significant milestone for Nigeria and the US that would provide increased access to trade financing for Nigerian businesses whilst facilitating smoother and more robust mutually beneficial trade flows between the two countries.

The partners said that the MoU demonstrates a shared desire to identify and promote trade and economic cooperation between the two countries, especially in sectors like clean energy, critical minerals, aviation, maritime transport, digital connectivity, and infrastructure, amongst others.

“Nigeria is the second largest U.S. export destination in Sub-Saharan Africa, but there is so much opportunity to grow,” Lewis said.

“This MoU with NEXIM sends a strong market signal to Nigeria that EXIM is eager to forge a stronger commercial relationship by supporting U.S. exports in key sectors.”

The Managing Director of NEXIM in his own remarks noted that, “This collaboration marks a significant milestone in our efforts to strengthen trade ties between Nigeria and the United States. We are confident that this partnership will open new avenues for economic growth and development.”

The MoU, signed virtually, marked a significant milestone for the United States and Nigeria.

Read also: Kano’s new hulling plant will increase sesame seed production in Nigeria -NEXIM bank CEO

The partners said that the MoU would enhance the competitiveness of companies in both nations and strengthen collaboration by exploring options for utilising EXIM’s medium- and long-term loan guarantees and/or direct loans to finance U.S. exports to Nigeria.

They also announced that the pact contributes directly to EXIM’s Sub-Saharan Africa mandate.

“Over the past three years, EXIM has approved approximately $4 billion of authorisations in support of U.S. exports to sub-Saharan Africa,” they stated.

The Export-Import Bank of the United States (EXIM) is the nation’s official export credit agency with the mission of supporting American jobs by facilitating U.S. exports.

To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including credit insurance, working capital guarantees, loan guarantees, and direct loans.

As an independent federal agency, EXIM contributes to U.S. economic growth by supporting tens of thousands of jobs in exporting businesses and their supply chains across the United States.

The Nigerian Export-Import Bank (NEXIM), which is wholly owned by the Federal Government of Nigeria, was established by Act 38 of 1991 as an Export Credit Agency (ECA) and Export Development Bank.

Its mandate is to provide Finance, Risk Bearing and Advisory Services to duly registered companies in Nigeria towards the Expansion, Diversification and Development of the Non-Oil Export Sector in furtherance of increased foreign exchange earnings, jobs creation and rapid economic development of the country.

The Bank also complements in attracting foreign investment capital through availment of concessional lines of credit, co-financing arrangements and facilitation of buyers’/suppliers’ credits.