African Export-Import Bank (Afreximbank) and Nigeria Export-Import Bank (NEXIM), have announced plans to mobilize up to $50 million (N19billion) project preparation funds to support the public and private businesses in Nigeria.
Afeximbank and NEXIM, had entered into a Memorandum of Understanding (MoU) on February 20, 2021, in a bid to establish a Joint Project Preparation Fund, designed to develop Small and Medium-sized Enterprises (SME) and facilitate the intra-African trade.
Prof. Benedict Oramah, President of Afeximbank, stated that the financial institution in collaboration with NEXIM, will donate $50m project funds to support the Nigerian public and private sector investors, adding that technical support services will also be provided to the Nigerian investors to ensure the diversification of the Nigeria economy.
According to Friday’s official exchange rate, the project preparation funds is equivalent to N19 billion.
Oramah also added that the project fund will assist in the development of early projects from concept stage to bankability by covering the preparation of feasibility studies, project development and advisory services and any other related costs.
In his words: “The execution of this MoU marks yet another significant milestone in our collaboration with NEXIM. This intervention is timely as the Fund will play a catalytic role in accelerating the diversification of the Nigerian economy by ensuring a steady flow of bankable projects in priority tradable sectors in a timely manner. In addition to enhancing bankability, the Fund will, on a case-by-case basis, undertake feasibility studies to assess the viability of accessing markets in the sub-region, thereby promoting intra-African trade under the AfCFTA.”
Similarly, Mr. Abubakar Abba Bello, Managing Director of NEXIM, stated that the project fund of $50 million(N19billion) will help in assisting Nigerian investors in various sectors such as agro-processing; export manufacturing; healthcare; creative and entertainment industry; solid minerals development, among other sectors.
In his words: “We are quite pleased by this opportunity to, once again, partner with Afreximbank in proffering a solution to one of the major challenges that have limited the flow of credit to the Nigerian export sector. The fund is designed to mitigate the project selection challenges, particularly amongst the SMEs, towards boosting their contribution to formal exports. This technical expertise will therefore enhance NEXIM’s implementation of its export development programme, especially with regards to the State Export Development and Industrialization initiatives. This partnership strongly aligns with the NEXIM’S mandate and strategic plan and will no doubt facilitate its intervention towards attracting critical investments in trade enabling infrastructure and the promotion of value-added exports.”
