The African Export and Import Bank (Afreximbank) and the Nigerian Export and Import (NEXIM) Bank on Thursday night in Durban, South Africa, signed a total of $475 million project financing and a grant of $350 million.
A breakdown of the financing shows that the $350,000 grant is to be used to dredge the Niger-Benue River to help move goods from the seaports further into the land port.
The second agreement was Afreximbank’s support to Nexim with a $50 million facility to boost fleets. More importantly, there was another $400 million to help expand inland ports as well as existing ports to support intra-African and regional trade. This is the first deal to be signed between the two institutions. To ensure that Afreximbank can work together with Nexim to promote the ceiling projects.
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Also embedded in this, was a $25 million facility, referred to as the pandemic trade impact facility, which is to be disbursed to NEXIM to help make its support to its clients who are into the import-export business in Nigeria. The facility will help Nexim’s clients mitigate the impact of the COVID and the pandemic on their businesses and ensure that they can bounce back and quickly get out of the adverse effects of Covid-19.
Speaking on the sideline of Nigeria’s day at the ongoing 2021 Intra-African Trade Fair (IATF), Benedict Oramah, (professor), president, Afreximbank, said, “why we do this country day event is to receive information on the trade and investment opportunities in the countries that win the bid to host country days. We also use it in the case of Nigeria to test the reach and diverse culinary and cultural endowment of the country”.
He said Nigeria has demonstrated resolute support to Afreximbank and the Intra-African trade fair. This has been underscored this year by the participation of President Buhari at the opening ceremony. This year also, Nigeria is participating with a very strong contingent of about 1,500 as of today (Thursday).
“Afreximbank is most grateful for the support we have been receiving from Nigeria. We are grateful for the support we have received during this trade fair, which has a long history of fund support Afreximbank has received from the government and the people of Nigeria since it was created,” Oramah said.
It is that support that propels Afreximbank’ intervention in Nigeria. For instance, Afreximbank’s cumulative direct financing support topped $26 billion by the end of 2020.
He said Afreximbank has continued to support the Nigerian economy through various funding programmes for Nigerian businesses.
According to him from January to August 2021, total loan approvals for Nigeria were in excess of US$1.89 billion and at the end of August 2021, the Bank’s total loans exposure to Nigeria was US$5.5 billion, representing 26.8 percent share of the Bank’s total loans and advances.
He said $3.5 billion is in the pipeline and at various stages of execution for potential disbursement by the first quarter of next year. This will bring total exposure by the end of the first quarter to somewhere between $8 and $9 billion.
Over the years, the Bank has supported and facilitated trade and investments in Nigeria through its array of financial and non-financial instruments. Since its inception in 1993, the Bank has approved over US$26 billion in support of Nigerian public and private sector entities. This has had a huge developmental impact on the country’s economy and international trade sector.
President Muhammadu Buhari said Nigeria is one of the largest services exporters in the world. Represented by Uche Ogah, Minister of State for Mines and Steel Development, he said, Nigeria has the prospect of Nigeria being a hub for the auto sector in the region, not only for assembling but also for components in the technological advancement, with which that will come.
“If we want to position the ACfTA and ensure that AfCTA makes our continent collectively competitive, we cannot do it without Nigeria. We certainly will not be able to reach the scale that we want to reach in the level of competitiveness that we want to reach.
“I know that without Nigeria on board, we will not be able to complete the success story of AfCTA. I want to link this export capacity that Nigeria has with what we have seen here today and in the last few days, the exhibition and all of the manufacturing capacity that we have seen,” he said.
