The Nigeria Export-Import Bank (NEXIM) has disclosed its intention to raise 37 billion Naira for Nigeria’s 36 states and the Federal Capital Territory (FCT), in order to boost exportation of agricultural products. NEXIM’s Managing Director, Abubakar Bello, acknowledged the fund is to encourage the development of agriculture in the country.
Bello noted that 1 billion Naira will be disbursed to each state and the FCT, as credit facility at a single digit interest rate. He said the amount will be increased when the need arises. The Managing Director added that the fund will be used to develop one or two export commodities from primary production to export stage.
The Nigerian government has been implementing strategies to diversify the economy and reduce the country’s dependence on oil, a move which can be attributed to the unstable price of crude in the international market. Nigeria’s economic recovery plan is based on priority sectors such as agriculture, manufacturing and solid minerals which include iron, gold and coal.
To revive its under-performing economy, the Nigerian government is placing a renewed focus on the agricultural sector. The government aims for investment in the sector to provide jobs and address chronic food insecurity in parts of the country.
NEXIM, which was established by Act 38 of 1991 as an export credit agency, provides export credit guarantees and export credit insurance for exports of Nigerian commodities and services within and outside West Africa.