Improving the Role of Eximbanks/ECAs in the OIC Member States
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3.3 Country Summaries: African Group
3.3.1 Nigeria
Nigerian Export-Import Bank (NEXIM)
Description
The Nigerian Export-Import Bank (NEXIM) was established in 1991 as an ECA, replacing the
Nigerian Export Credit Guarantee and Insurance Corporate of 1988. NEXIM’s objective is to
support the non-oil export sector and its statutory functions include providing finance, risk-
bearing facilities as well as trade and market information and export advisory services to the
Nigerian export community. With oil and gas accounting for more than 97% of total exports, the
focus on diversification of the export base is pertinent.
NEXIM’s strategy is driven by government policy, namely the Economic Transformation Agenda
of President Jonathan, which highlights the importance of diversifying the country’s economy.
Based on this agenda, NEXIM selected four sectors of focus for providing support through its
facilities (manufacturing, agro-processing, solid minerals and services, referred to as MASS).
In line with being a policy-driven bank, the Bank’s Board of Directors consists of six members,
four of which represent the Federal Government (Central Bank, Ministry of Finance, and Ministry
of Trade), one from the private sector and NEXIM’s managing director who took over in August
2009. The Board was dissolved and completely renewed in 2011.
With a staff of only 64 (2010) and offices in Abuja (headquarters) and three regional offices
(Lagos, Calabar and Kano), NEXIM offers a full range of export credit insurance, guarantee and
finance facilities. The Bank offers export credit guarantees (short term) to Nigerian banks and
credit insurance facilities (against political and commercial risks in the event of non-payment by
foreign buyers). In addition, NEXIM offers financing in local currency as well as foreign currency
(short and medium term). NEXIM issues Letters of Credit in favour of local importers. A key
service of NEXIM is the provision of trade information to exporters. The Bank also serves as the
government’s national guarantor as in the case of the ECOWAS inter-state Road Transit program,
among other functions. Apart from its own operations, NEXIM also manage funds on behalf of
Government for AfDB Export Stimulation Loan which was established in 2010 for N2.5 bn (USD
15.9 million).
At the time the current Managing Director assumed his position in 2009, the financial and
operational performance of the Bank had deteriorated significantly. The Bank’s capital was
nearly depleted, income was low and expenses were escalating. A number of factors contributed
to this, including a lack of a risk management framework, corporate governance failures, and
activities that were inconsistent with the Bank’s core mandate.
In the last 5 years, since the current management team was appointed, it is reported that NEXIM
has seen a turnaround of profitability, payment of dividends, decrease in non-performing loans
and increased business volumes. This has been driven by a transformation agenda set out in a 5-
Year Strategic Plan which covered a number of key areas, such as marketing and business
development targets; corporate governance and risk management architecture/frameworks in