Improving the Role of Eximbanks/ECAs in the OIC Member States
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The Nigerian Export-Import Bank (NEXIM) has been specifically mandated to focus on non-oil
exports in different segments of the market as compared to conventional banks. NEXIM does not
compete with commercial banks but seeks rather to complement and work with them for the
development of the economy. The areas of focus are usually virgin segments of the market, which
commercial banks are not structured to service, and NEXIM’s role is to help structure the
appropriate financing for such markets, either singly or with other commercial banks or
financial institutions through syndication.
Since 2009, under the direction of a new MD, there has been greater focus on this market
segment. After some years of loss-making and obscurity, NEXIM has a higher profile, with
strengthened operational processes, corporate governance, and risk management and turning a
profit of 189 million Naira (USD 1.2 million) in 2010, after a loss the previous year of 5,460
billion Naira (USD 34.7 million). In addition, NEXIM has partnered with national agencies such as
National Export Promotion Council, the government agency tasked with promotion of non-oil
exports through utilization of policy tools including establishing incentives for the stimulation of
export oriented activities.
NEXIM is only one of Nigeria’s Development Finance Institutions, which are also active in the
SME space and include Bank of Agriculture (BOA) and Bank of Industry (BOI). Such institutions
in the past have served as solid instruments for impacting the growth and development of SMEs.
NEXIM plays a crucial role in providing access to financial instruments to SMEs, including credit
or insurance services that promote SME lending.
As part of its efforts to improve its offerings to SMEs, NEXIM has partnered with the African
Development Bank for the design and delivery of a technical assistance program, specifically
targeting the SME sector. This is expected to strengthen risk management in SME financing and
contribute to the development of innovative SME products by SME lenders.
NEXIM has clearly articulated its vision and mission. Its vision is of being the ‘leading African
Export Development Bank.’ NEXIM serves as both lender and insurer and has a well-defined
policy mandate, which is captured in its mission - ‘to become a first class institution promoting a
diversified export base through the provision of finance, risk-bearing and advisory services in
line with government trade policy’.
As captured in NEXIM’s Servicom Charter, the Bank prioritizes customer service at all stages of
service provision by establishing open lines of communication with all its clients which include
banks, exporters, importers who produce exporters, government ministries such as Central Bank
of Nigeria and Federal Ministry of Commerce as well as the institution’s clients. This is ensured
through access to relevant information on the bank’s website, customer surveys on staff
performance which are conducted regularly and continual engagement with clients on their
needs and relevant business solutions.
NEXIM has had a significant impact on its stakeholders through its various Corporate Social
Responsibility programs, which include financing healthcare initiatives, providing educational
materials to schools, supporting sports development, promoting entrepreneurial skills and
exports financing for SMEs and sponsoring associations that support people with disabilities.
NEXIM is the right fit for the Nigerian economy where the majority of exports are financed by a
sophisticated banking sector while a minority remains unserved. Hence, NEXIM’s success is due
to its design, which is intended to complement commercial banks by supporting non-oil SME
exporters that commercial banks are not able to serve. It has tailored products to target market,