The MD of NEXIM claims the bank is currently working on a credit facility for buyers of Non Oil exports from Nigeria as a means of boosting Nigerian exports. The facility is for buyers of goods exporting from Nigeria and mainly for those in the West-Africa region. Details of the facility was not revealed and it not clear who exactly is being targeted. Is it wholesalers or the final consumers in the destination countries? And what security is being contemplated for the facility. Whilst this may seem like a back door subsidy program, it surely helps local exporters clear of their inventory.
News Story below
The Nigerian Export-Import (NEXIM) Bank is working to provide buyer-credit facilities to potential buyers of Nigerian non-oil products, as a way of boosting exports and deepening transactions with the nation’s trading partners, particularly those in the West- Africa region.
Nexim bank Managing Director, Roberts Orya, said the initiative is to make Nigeria’s non-oil exporters more competitive in the marketplace and enable them have an edge over their peers by 2015.
According to him, NEXIM bank is in talks with its shareholders, the Central Bank of Nigeria (CBN) and Ministry of Finance, to get them to enhance the bank’s share capital so that they can use part of it to begin to offer buyer credit facilities.
Buyers credit is a financial arrangement in which a bank or financial institution, or an export credit agency in the exporting country, extends a loan directly to a foreign buyer, or to a bank in the importing country, to pay for goods and services from the exporting country.