As part of the support for intra-African trade and investments, the African Export-Import Bank (“AFREXIM”) has signed a Memorandum of Understanding with the Nigerian Export-Import Bank (“NEXIM Bank”) and the Nigerian Export Promotion Council (“NEPC”) for the provision of a US$1,000,000,000 (one billion United States Dollars) line of credit to qualifying beneficiary projects and transactions (the “MoU”). The MoU was signed in Cairo, Egypt at the just concluded inaugural Intra-African Trade Fair which held between 11th - 17th December 2018.
NEXIM Bank is a Nigerian agency established by the NEXIM Bank Act Cap N106, Laws of the Federation of Nigeria (“LFN”) 2004 for the purpose of providing finance, risk bearing services, as well as trade and market information and export advisory services to the Nigerian export community. On its part, NEPC is a statutory agency established under the NEPC Act Cap N108 LFN 2004, which is responsible for the promotion of non-oil exports. Companies engaged in non-oil export business in Nigeria are required to register with NEPC and obtain a registration certificate.
The MoU will be implemented under the Nigeria-Africa Trade and Investment Promotion Programme (“NATIPP”) to support trade and investment flows between Nigeria and other African countries with special emphasis on value addition, particularly in primary goods and commodities. According to the Managing Director/Chief Executive of NEXIM Bank, Mr. Abba Bello, the deal would go a long way in boosting access of Nigerian exporters to investment capital and investment guarantee instruments.
It is expected that the funds provided by AFREXIM to NEXIM will boost non-oil export activities in Nigeria, which will aid the diversification of the revenue base of the Nigerian economy and also accelerate the development of the non-oil export sector in general.
The contents of this news alert are meant for the general information of our clients and friends and do not amount to legal advice. All enquiries on the subject may be made to: email@example.com
Adepetun Caxton-Martins Agbor & Segun
9th Floor, St. Nicholas House, Catholic Mission Street, Lagos Island, Lagos State, Nigeria.
Telephone: +234 (1) 462 2094; 462 2480; 740 6743 Fax: +234 (1) 461 3140