Over 12,000 Jobs Created as NEXIM Bank Invests N420 Billion in Export Sector
- NEXIM Bank has disbursed over N420 billion to support non-oil exporters, creating more than 12,000 direct jobs and many indirect ones
- The loans, offered at a 9% interest rate, aim to boost small and medium businesses and promote value-added exports
- NEXIM is also focusing on youth and women's participation in export financing to help drive Nigeria’s goal of reaching a $1 trillion economy by 2030
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
The Nigerian Export-Import Bank (NEXIM) has given out more than N420 billion in loans to support exporters through different funding programs.
This support has helped create over 12,000 direct jobs and many more indirect jobs in related industries.
NEXIM’s Managing Director, Mallam Abubakar Abba Bello, shared this news in Abuja during an event organised by the youth wing of the All Progressives Congress (APC).
Source: UGC
He explained that one of their major programs, the Export Development Facility (EDF), is designed to support small and medium-sized businesses engaged in non-oil exports.
Loans under this program come with a low interest rate of 9%, in line with development finance standards.
According to Bello, the EDF is backed by N150 billion from the Central Bank of Nigeria (CBN) and is designed to help grow the non-oil export sector. So far, N137 billion has been received by NEXIM from the CBN, and NEXIM has already lent out over N420 billion in total.
Bello said:
"We have disbursed over N420 billion, which is close to NEXIM Bank’s total assets.The number of direct jobs created is in the region of 12,000. This is outside of the indirect jobs created along the value chain through our plants’ financing.”
The EDF works as a revolving loan, meaning that when exporters repay their loans, the money is made available to other exporters. All loans offered by NEXIM follow the same terms, including the 9% interest rate.
Bello emphasised the importance of young people in helping Nigeria reach its goal of a $1 trillion economy by 2030. He said this goal cannot be achieved without the involvement of youth, who make up 70% of the population.
He added that NEXIM not only funds non-oil exports but also ensures that the products being exported have added value, rather than just raw materials. Since 2017, the value of non-oil exports has increased thanks to this policy.
Source: UGC
To make it easier for people to access loans, Bello said NEXIM has worked to reduce the difficulties caused by strict collateral requirements. He also stated that the bank provides special support to women and young people in its export funding programs.
Source: Legit.ng
