AFREXIM BANK, NEXIM Sign $500Million Dealin Durban

The African Export Import Bank (AFREXIMBANK) and the Nigerian Export ImportBank(NEXIM) have signed a partnership agreement to implement various transactions valued at about $500m.

The signing ceremony took place on Thursday,18th November 2021 on the sideline of the on-going Intra-African Trade Fair in Durban, South Africa with Mrs. Kanayo Awani the Managing Director, Intra-African Trade initiatives signing on behalf of Afrexim bank while the Managing Director /Chief Executive, NEXIMBank, Mr. Abba Bello signed on behalf of his Bank.

Information gleaned from the document indicates that the agreement covers four major areas, with the overall objective of promoting international trade and boosting trade between Nigeria and other African countries.The key areas include:

The Pandemic Trade Impact Mitigation Facility (PATIMFA), under which Afreximbank has provided $25m in the first instance to alleviate the economic and business impact of the Covid19 pandemic on Nigeria businesses. NEXIM will utilise the facility for continuous funding of exporters, particularly SMEs, many of whom were adversely impacted by the disruptions of the global value chain and other fallouts of the Covid19 Pandemic.

$400m Credit Facility to support the rehabilitation and modernisation of Nigerian ports as well as development of new inland ports as part of efforts to improve trade and infrastructure.

$50m Loan for acquisition of badges for fleet expansion in furtherance of the regional shipping operation (theSealinkproject) being promoted by NEXIM.

$350,000 grant provided to support the charting of the main channels of the River Nigeria and Benue to facilitate navigation and successful shipping operations.

The President of AFREXIM, Professor Benedict Oramah, has earlier observed that PATIMFA was launched by Afrexim bank to assist member countries in managing the financial, economic and health shocks caused by the Covid-19 Pandemic. He added that the Bank aims to help in preserving and promoting economic stability of member countries through the period of the global uncertainty and that the fund would ensure that trade debt payments that fall due are honoured and support the stabilization of foreign exchange resources in order to preserve the flow of critical imports.

Mr. Abba Bello ,the Managing Director of NEXIM Bank also welcomed the intervention and thanked Afreximbank for the continued partnership. He noted that the $25m provided under PATIMFA will be used to refinance a portion of Nexim Bank existing loan portfolio to provide short term liquidity for further lending activities by the bank to companies operating in the Non-Oil exports sector of the country.

Bello noted that the Bank’s effort to promote the regional shipping company (theSealinkProject) was in response to the need to boost trade within the regional market and that the scope of the project was later expanded to include the development of inland waterways to facilitate the export of bulk cargo and unlock opportunities insolid minerals sector.