The Nigerian Export-Import Bank (NEXIM) has achieved a significant milestone by securing a Bbb+ rating from Agusto & Co. Ltd., a prominent Nigerian credit rating agency. This rating underscores NEXIM’s robust financial health and positions it as one of the most reliable development finance institutions (DFIs) in Nigeria. The accolade reflects the bank’s strong operational framework, prudent financial management, and its pivotal role in advancing Nigeria’s economic diversification through non-oil export promotion and support for import-substituting enterprises.
In its 2024 financial report, NEXIM announced an operating profit of N30.47 billion, a remarkable leap from the N13.75 billion recorded in the previous financial year. This more than twofold increase in profitability signals a significant improvement in the bank’s operational efficiency and strategic execution. The financial success is a testament to NEXIM’s commitment to fostering sustainable economic growth and its ability to navigate Nigeria’s complex economic landscape effectively. The bank’s strong performance is further evidenced by its robust liquidity and capital adequacy ratios, which provide a solid foundation for its continued expansion and support for critical sectors of the economy.
NEXIM, jointly owned by the Central Bank of Nigeria (CBN) and the Ministry of Finance Incorporated (MOFI), was established with a clear mandate to drive Nigeria’s non-oil export sector and support enterprises that reduce reliance on imported goods. By focusing on industries such as manufacturing, agriculture, solid minerals, and services, the bank has positioned itself as a catalyst for economic diversification, a critical priority for Nigeria as it seeks to reduce its dependence on oil revenues. The bank’s loan and equity investment portfolios have seen significant growth, reflecting its strategic investments in projects that align with Nigeria’s broader economic goals.
Under the leadership of its Managing Director, Mr. Abba Bello, NEXIM has intensified its support for non-oil exporters, disbursing over N495 billion to various projects as part of its development finance interventions. These funds have been channeled into initiatives that promote value addition, enhance local processing capacity, and boost Nigeria’s competitiveness in global markets. The impact of these interventions is far-reaching, with NEXIM’s financing efforts creating and sustaining over 36,000 direct and indirect jobs across the country. This job creation has contributed to economic stability and fostered inclusive growth, particularly in underserved regions and sectors.
One of NEXIM’s flagship initiatives is the Regional Sealink Project, a public-private partnership aimed at strengthening logistics and trade networks across West and Central Africa. By improving sea transport infrastructure, the project seeks to facilitate smoother and more cost-effective trade, enabling Nigerian exporters to access regional markets more efficiently. The initiative is part of NEXIM’s broader strategy to address logistical bottlenecks that have historically hindered Nigeria’s export potential, particularly for non-oil goods.
In addition to the Sealink Project, NEXIM has prioritized innovative financing solutions to support small and medium-sized enterprises (SMEs) and large-scale export-oriented projects. One such initiative is the promotion of factoring services, which provide SMEs with immediate access to cash flow by allowing them to sell their receivables at a discount. This mechanism is particularly valuable for smaller businesses that often face liquidity challenges, enabling them to sustain operations and pursue growth opportunities.
NEXIM has also partnered with the African Export-Import Bank (Afreximbank) to launch the Joint Project Preparation Fund (JPPF). This fund is designed to enhance the viability of large-scale export-oriented projects by providing resources for feasibility studies, project planning, and other preparatory activities. By de-risking these projects, the JPPF aims to attract additional investment and ensure their successful implementation, further strengthening Nigeria’s export ecosystem.
Recognizing the untapped potential of Nigeria’s solid minerals sector, NEXIM is developing specialized financing models tailored to the mining industry. These include Contract Mining, Equipment Leasing, and Buyers’ Credit/Export Credit Agency (ECA) Financing. These innovative financing mechanisms are designed to unlock Nigeria’s vast mineral resources, which have been underutilized due to limited access to capital and technical expertise. By providing targeted support to the mining sector, NEXIM aims to position Nigeria as a significant player in the global mineral export market, contributing to foreign exchange earnings and economic diversification.
Mr. Bello emphasized that NEXIM’s strategic focus remains on strengthening local processing capacity and enhancing Nigeria’s global trade position through value addition in non-oil exports. By prioritizing industries that add value to raw materials, such as agro-processing and mineral beneficiation, NEXIM is helping to create a more resilient and competitive economy. The bank’s efforts to increase foreign exchange earnings are particularly critical at a time when Nigeria faces challenges related to currency depreciation and external trade imbalances.
Looking ahead, NEXIM is poised to continue its transformative role in Nigeria’s economic landscape. The bank’s commitment to supporting non-oil exports aligns with the federal government’s broader economic diversification agenda, which seeks to reduce Nigeria’s reliance on volatile oil revenues. By fostering partnerships with regional and international institutions like Afreximbank, NEXIM is also enhancing Nigeria’s integration into global trade networks, creating new opportunities for exporters and investors alike.
The Bbb+ rating from Agusto & Co. Ltd. serves as a strong endorsement of NEXIM’s financial discipline and strategic vision. It also reinforces the bank’s credibility among stakeholders, including investors, exporters, and policymakers. As NEXIM continues to expand its footprint in Nigeria’s non-oil export sector, its contributions to job creation, economic stability, and global trade competitiveness will likely have a lasting impact.
In conclusion, NEXIM’s achievements in 2024 highlight its pivotal role in driving Nigeria’s economic diversification and supporting the growth of non-oil exports. With a strong financial foundation, innovative financing models, and a clear focus on value addition, the bank is well-positioned to continue delivering impactful results. Its efforts to create jobs, improve logistics, and unlock new export opportunities underscore its commitment to fostering inclusive and sustainable growth across Nigeria. As the bank builds on its successes, it will play an increasingly vital role in shaping Nigeria’s economic future, positioning the country as a competitive player in the global trade arena.
