CHIGOZIE AMADI
The Nigerian Export-Import Bank (NEXIM) and the Export-Import Bank of the United States (EXIM) yesterday signed a Memorandum of Understanding (MoU) to deepen collaboration and trade ties between the United States and Nigeria.
The agreement was signed by the US Exim President/Chair, Reta Jo Lewis on behalf of US EXIM, while Managing Director/Chief Executive, NEXIM Bank, Mr. Abba Bello, signed on behalf of the bank.
Essentially, the agreement demonstrates a shared desire to identify and promote trade and economic cooperation between both countries, especially in sectors including clean energy, critical minerals, aviation, maritime transport, digital connectivity, and infrastructure, among others.
Lewis said, “Nigeria is the second largest U.S. export destination in Sub-Saharan Africa, but there is so much opportunity to grow.
“This MoU with NEXIM sends a strong market signal to Nigeria that EXIM is eager to forge a stronger commercial relationship by supporting U.S. exports in key sectors.”
Also, Bello said, “This collaboration marks a significant milestone in our efforts to strengthen trade ties between Nigeria and the United States. We are confident that this partnership will open new avenues for economic growth and development.”
The MoU marks a significant milestone for the United States and Nigeria as it seeks to enhance the competitiveness of companies in both countries and strengthen collaboration by exploring options for utilising EXIM’s medium- and long-term loan guarantees and/or direct loans to finance U.S. exports to Nigeria.
The agreement further contributes directly to EXIM’s Sub-Saharan Africa Mandate.
Over the past three years, EXIM had approved about $4 billion of authorisations in support of U.S. exports to sub-Saharan Africa.
EXIM is the US official export credit agency with the mission of supporting American jobs by facilitating U.S. exports.
To advance American competitiveness and assist U.S. businesses as they compete for global sales, EXIM offers financing including export credit insurance, working capital guarantees, loan guarantees, and direct loans.
Similarly, NEXIM which is wholly owned by the federal government, has mandate to provide finance, risk bearing and advisory services to duly registered companies in Nigeria towards the expansion, diversification and development of the non-oil export sector in furtherance of increased foreign exchange earnings, jobs creation and rapid economic development of the country.
The bank also complements in attracting foreign investment capital through availment of concessional lines of credit, co-financing arrangements and facilitation of buyers’/ suppliers’ credits.
