Visit to the Kingdom of Saudi Arabia by officials of the NEXIM Bank
Besides the $200 million Line of Credit, which is already being processed, the NEXIM Bank hopes to secure additional credit lines and leverage the Guarantee Fund of the Islamic Development Bank.
The Managing Director/Chief Executive of the Nigerian Export-Import Bank (NEXIM), Abba Bello, in company of the Executive Director, Bala Bello, and other management staff embarked on a working visit to Islamic Development Bank (ISDB) and Saudi Export-Import Bank from 13 – 17 February 2023.
The purpose of the visit was to engage in various bilateral meetings and other activities towards attracting development funds into the Nigerian non-oil export sector, promote capacity building and information exchange, as well as engage in necessary partnerships towards developing new products, particularly non-interest banking products to fill the yearning gap in the Nigerian financial system.
Highlights of activities during the working visit include:
1) Visit to the Saudi Export-Import Bank and signing of a Memorandum of Partnership
NEXIM Bank’s executives visited the Saudi Export-Import Bank during which it held various discussions, culminating in the signing of a Memorandum of Partnership (MOP). With the MOP, the two institutions seek to cooperate in providing financing, investment, and other services to promote trade between Nigeria and Saudi Arabia. The institutions also seek to explore the possibility of knowledge sharing, staff training, and capacity building initiatives.
The MOP was executed by the CEO of Saudi EXIM, Saad Alkhalib and MD/CE NEXIM Bank, Abba Bello, who signed on behalf of their respective institutions.
Specifically, the parties agreed to collaborate in the areas of co-financing, club deals, and syndication projects. The Saudi Exim also agreed to provide Buyer’s Credit facilities to Nigerian institutions for the purchases of Saudi goods and services and or financing for project development tied to Saudi exports.
Both parties will seek opportunities to secure financial guarantees or letters of intent for creditworthy beneficiaries, either Saudi or Nigerian exporters or international buyers, for purchases or project financing/execution.
2) Working Visit to the Vice President of Islamic Development Bank
NEXIM’s executives paid a working visit to Mansur Muhtar, Vice President, Islamic Development Bank (ISDB), represented by Anasse Alsami, the Acting Vice President and Director General, Vice President’s Office. Discussions during the meeting focused on the promotion of African-Arab trade, mutual sharing of information, capacity building, and the ISDB Reverse Linkage Policy. The parties also discussed how Nigeria could benefit from ISDB’s programmes, such as the “She Trade” and “Women Tech Stars.”
3) Technical Meetings with Institutions under the ISDB GROUP
After the visit to the Vice President’s office, officials of NEXIM Bank also held technical meetings with various institutions under the ISDB Group.
i) Islamic Solidarity Fund for Development (ISFD)
Officials of NEXIM Bank also met with the Islamic Solidarity Fund (ISFD) on how the bank and Nigeria can benefit from ISDB Guarantee Facility Fund and Capacity Building Programmes. The Senior Advisor to the Director General of ISFD, Khamais EL Gazzah, and his team represented the institution.
ii) International Trade Finance Corporation (ITFC) and International Cooperation for the Development of the Private Sector (ICD)
The bank also met with the Chief Operating Officer of the International Trade Finance Corporation (ITFC), who doubles as the Acting MD of International Cooperation for The Development of the Private Sector (ICD), Nazeem Nordali, accompanied by officials of both ITFC and ICD.
During the meeting, the NEXIM Bank discussed the on-going transaction towards mobilising $200 million line of financing for Nigeria through the bank. The meeting also discussed opportunities for collaboration towards securing funding for port infrastructure in furtherance Sealink project being promoted by NEXIM.
iii) Global Partnership & Practices (GPP)
NEXIM Bank’s executives also held a meeting with officials of Global Partnership & Practices (GPP), represented by the Director, Resilience & Climate Action, Syed Hussain Quadri, and Director, Economic Empowerment, Nabil Ghalleb. During the meeting, the bank called for partnership in promoting SMEs in Nigeria. The GPP agreed to support Nigerian entrepreneurs through some of its initiatives such as “Business Resilience Assistance for Value-Adding Enterprises for Women (BRAVE)”, “She Trade Programme”, which supports women in trade, and “Women Tech Stars”, which supports women in technology.
Overall, the working visit to Saudi Arabia promises to provide a lot of benefits for the Nigerian economy and the non-oil export sector in particular. Besides the $200 million Line of Credit, which is already being processed, the NEXIM Bank hopes to secure additional credit lines and leverage the Guarantee Fund of the Islamic Development Bank.
One of the highpoints is the opportunity for capacity building, particularly in the area of developing Islamic banking products, which will provide financial inclusion for some of Nigeria’s exporters, who hitherto have not benefited from regular banking products.
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