The Nigerian Export-Import Bank has entered into a $1bn trade facilitation pact with the African Export-Import Bank for Nigeria and other West African countries.
The signing of the Memorandum of Understanding was one of the highpoints of events during the inaugural Intra-African Trade Fair in Cairo, Egypt.
A statement from NEXIM Bank on Monday explained that the MoU would be implemented under the Nigeria-Africa Trade and Investment Promotion Programme to support trade and investment flows between Nigeria and other African countries.
Under the agreement, AFREXIM will provide $1bn Line of Credit, which will be disbursed by NEXIM to qualifying beneficiary projects and transactions in support of intra-African trade and investments.
According to the MoU, the fund is available to support the growth of trade between Nigeria and other African countries with special emphasis on value addition, particularly in primary goods and commodities.
The statement said the $1bn would assist in enhancing local earnings and jobs creation.
The fund, it added is also available to support capital and investment flows as well as projects being sponsored by Nigerians in other countries.
While speaking during the signing, the Managing Director/Chief Executive of NEXIM, Abba Bello, said the deal would go a long way in boosting access of Nigerian exporters to investment capital and investment guarantee instruments, including the Small & Medium Enterprises.
He said through the pact, the bank would be able to promote intra-African trade and increasing the volume of formal trade.
In implementing this programme, Punch reports that the MD also highlighted that the NEXIM bank would be working with all stakeholders, including exporters, investment partners as well as other financial institutions, both domestic and foreign to realize the NATIPP programme objectives.
Posted by Juliet Ekwebelam