Abuja: The Senate has advanced a bill to amend the Nigerian Export-Import Bank (NEXIM) Act, marking its progress with a second reading. This legislative move aims to facilitate the bank's recapitalisation and implement an improved governance structure.
According to News Agency of Nigeria, the bill's principles were presented by Sen. Abiru Adetokunbo (APC-Lagos) during a plenary session. During his lead debate, Sen. Abiru emphasized NEXIM Bank's crucial role in diversifying Nigeria's economy, earning foreign exchange, and creating employment opportunities. The proposed amendment seeks to ensure that the bank effectively fulfils its mandate and competes within the global financial landscape.
Sen. Abiru highlighted the necessity for adequate recapitalisation and a more suitable supervisory framework for NEXIM, given its role in national development. Established in 1991, the bank's mission is to promote and diversify exports through credit facilities, export guarantees, and risk insurance services. However, the senator expressed concern over the outdated legal framework under which NEXIM operates, which hampers its ability to tackle emerging challenges.
The amendment aims to increase the bank's share capital, stagnant at N50 billion since 1991, equating to about $33 million. In comparison, Ghana's export bank is capitalised at $80 million, while Egypt's export development bank stands at $420 million. Strengthening NEXIM's governance structure and boosting export trade are seen as vital to meeting current economic demands.
Sen. Abiru underscored the importance of making NEXIM a strategic financial institution under the current administration's economic plan, supporting a resilient, export-driven, and globally competitive Nigerian economy. He urged his colleagues to support the bill's progression beyond the second reading stage.
Sen. Solomon Adeola (APC-Ogun) described the bill as technical and long overdue, advocating for its swift passage, as the bank is essential for economic growth and supporting local exporters. Following the second reading, Deputy Senate President Barau Jibrin referred the bill to the Committee on Banking, Insurance and other Financial Institutions for further review. The committee is expected to report back to the plenary within four weeks.