Nigeria: Appraising 3 Years of Reform At Nexim Bank

(AllAfrica, Lagos, 25 August 2020) Since 1986, Nigeria has pursued an export-led strategy. This includes an emphasis on non-oil exports such as cocoa, groundnut, cotton, palm produce, rubber, and grains owing to perennial fluctuations in the prices of oil in the international market. One component of this strategy was the establishment of the Nigerian Export-Import Bank (NEXIM) in 1991. Owing to the twin shock of the COVID-19 pandemic and the sudden fall in international oil price, the Nigerian economy is experiencing a fall in exchange earning, a fall in Gross Domestic Product (with latest figures showing a contraction of over 6 percent), depletion of external reserve, currently at $34 billion, scarcity of foreign exchange, and high cost of goods. Public policy analyst, Terhemen Ikyaave noted a boost in collaboration between NEXIM and the Central Bank of Nigeria to fund the non-oil export sector. A notable result he said is the disbursement of loans totaling over N39bn (US$100.6M) to 27 export companies under the Non-Oil Export Stimulation Facility.