Improving the Role of Eximbanks/ECAs in the OIC Member States
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line with international best practice; organization-wide KPIs and scorecards; revamping of
policies, processes and procedures and an IT transformation. The Bank is considering raising
money from the international market or floating a bond and is currently seeking a credit rating.
Between August 2009 and December 2013, the Bank has supported Nigerian exporters, mainly
SMEs in the MASS sectors for a total N30.99 billion (USD 200 million), and issued Guarantees
valued at USD 27.3 Million. Its Servicom Charter, promising defined response times for
customers, has been an important contributor to NEXIM’s success.
NEXIM is internationally connected. It has opened L/Cs in favour of EXIM Bank of India, Afrexim,
ECOWAS Bank of Investment and Development and has also partnered with AfDB and IsDB in
various sectors, including developing more targeted programs for SMEs. In 2014, NEXIM signed
a USD 100 Million line of credit agreement with EXIM Bank of India, for the financing of three
energy projects in the provision of electricity transformers to solar electrification in rural areas.
It is engaged in developing relationships with entities such as Export Development Canada
(EDC) and US Exim. In addition, NEXIM is a member of the G-NEXID.
Analysis
By most standards, NEXIM appears to be a well-functioning ECA. It was declared in 2013 the best
performing Development Finance Institution in Africa by the Association of African DFIs. Under
the current leadership, NEXIM has become a much more focused organization, following a
working 5 year strategic plan which has covered the period 2010 to 2015 that has put greater
emphasis on its public policy mission to support the non-oil sectors of Nigeria’s economy. NEXIM
turned around its financial position significantly to generate a profit and has opened up funding
lines with international DFIs. The objective to seek an international credit rating will further
leverage its balance sheet and increase its access to international funding, thus allowing an
expansion of its business.
However, until a few years ago, it did not have an operational export credit insurance system. An
MOU was signed with ICIEC to help design and implement the system, but the MOU was not
implemented. Additional areas for future focus include ensuring annual reports are publicly
available and audited financial reports are up-to-date. As for products, NEXIM has focused
mostly on exporting SMEs providing both domestic and foreign currency loans, but there is some
consideration to set up a buyer’s credit program which could be very important in regional trade
to support Nigerian exports into neighboring African markets.
3.3.2 Senegal
Description
SONAC S.A. (The National Company for Credit Insurance and Guarantee) was established in 1997
for the purpose of promoting trade by providing domestic and export (accounts receivable)
credit insurance and guarantees that aim to reduce credit risk faced by exporting companies and
lending banks. It replaced ASACE (the Senegalese Agency for the Insurance of International
Trade) which was established in 1981, but privatized by the government.
SONAC S.A. has a capital base of 1.5 billion CFA Francs (USD 2.6 million) after a second capital
injection in 2008 and its shares are held by Group SONAM (private insurance company with 65%