To increase Non-oil Exports, NEXIM talks with Islamic Development Bank in Saudi Arabia

Non-oil export are visible and invisible exports which do not form part of oil export but contributes to the growth of the total export. These non-oil sectors revenues are proceeds from agricultural products or crops, manufactured goods, tourist services/receipts, solid minerals, telecommunication services, environmental service, ICT services, financial services and other exports. In Nigeria, non oil exports decreased to 391254.40 NGN Million in September from 422708 NGN Million in August of 2022, according to National Bureau of Statistics (NBS).

A delegation from the Nigerian Export-Import Bank (NEXIM), headed by the Managing Director/Chief Executive, Mr. Abba Bello; Executive Director, Corporate Services, Bala Bello; and other staff members, undertook a strategic engagement with some International Development Finance Institutions in Saudi Arabia as part of its initiative to increase Nigeria’s non-oil exports.

During the visit, a Memorandum of Partnership (MoP) was signed with the Saudi Export-Import Bank, which is one of the major achievements. Co-financing, club deals, syndicated projects, the supply of buyer’s credit facilities to Nigerian institutions for the acquisition of products and services, and financing for project development connected to Saudi exports are important elements of the MoU.

Also, the parties agreed to look for chances to get financial guarantees or letters of intent for creditworthy recipients for Saudi or Nigerian exporters or foreign purchasers, for acquisitions or project financing/execution.

The vice president of the Islamic Development Bank (ISDB), Dr. Mansur Muhtar, was also visited by the NEXIM team while he was on business. Anasse Alsami, the acting vice president and director general of the vice president’s office, served in his place. African-Arab trade promotion, information sharing, capacity building, and the ISDB Reverse linkage policy were the main topics of discussion. The parties also talked about how Nigeria may profit from ISDB programs like “She Trade” and “Women Tech Stars”.

The bank also had technical consultations with a number of organizations affiliated with the ISDB Group. Included in this are discussions with the Islamic Solidarity Fund (ISFD) about how the bank and Nigeria might profit from the ISDB Guarantee Facility Fund and Capacity Building Programs.

Nazeem Nordali, the Chief Operating Officer of the International Trade Finance Corporation (ITFC) and acting Managing Director of the International Cooperation for the Development of the Private Sector (ICD), as well as other representatives from the ITFC and ICD, also attended the meeting with the Bank.

The bank discussed the $200 million ISDB line of credit for Nigeria through NEXIM during the meeting. Opportunities for cooperation in securing funds for port infrastructure in support of the NEXIM Sealink project were among the other topics of discussion.

The working trip to Saudi Arabia, according to the NEXIM MD/CE Abba Bello, is expected to have a significant positive impact on the Nigerian economy and non-oil export industry.

“Besides the $200m line of credit, which is already being processed, the bank hopes to secure additional credit lines and leverage the guarantee fund of the Islamic Development Bank. We also have the opportunity for capacity building, particularly in developing Islamic banking products, which will provide financial inclusion for some of our exporters, who hitherto, have not benefited from our regular banking products,” he added.


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