“With the signing of the MoU with Indonesia Eximbank, we hope to strengthen our existing bilateral relationship through increased technical assistance, promotion of non-oil export trade and other economic activities between Nigeria and Indonesia towards supporting our Government’s efforts to diversify the economy.” – Abba Bello
The Indonesia Eximbank has signed an Memorandum of Understanding (MoU) with the Nigerian Export-Import Bank (NEXIM Bank) expressing intention to enhance co-operation and forge stronger relationships in promoting regional and global trade and investment between Indonesia and Nigeria.
The MoU intends to foster trade, technical assistance, experience and information sharing, including other investment relations in a way that would promote financing, guarantees, insurance and counter trade instruments to increase transactions between Indonesia and Nigeria.
In his welcome remarks, Mr. Abba Bello informed the Indonesia Eximbank team that NEXIM Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector.
The Bank pursues this through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and financial advisory services etc.
Presently, the Bank’s current strategic initiatives are geared towards boosting job creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (MASS) sectors in alignment with the efforts of the federal government to diversify the economy, create jobs and increase both the value and sources of foreign exchange earnings in the country.
Bello expressed his delight that both Banks were able to quickly come to terms on the Articles of the MoU considering the brevity of time spent in the negotiations, which shows strong commitment on both sides to work towards a more mutually beneficial relationship.
Furthermore, the NEXIM MD indicated that by virtue of both banks’ membership of the Global Network of Eximbanks and Development Finance Institutions (DFIs) G-NEXID, he hopes that the intentions expressed in the MoU would be much easier to pursue. NEXIM Bank has been the honourary president of G-NEXID since May 2015.
In his response, the Managing Director of Indonesia Eximbank, Mr. Dwi Wahyudi expressed his satisfaction that the two institutions have established a viable intention to forge strong collaborative relationship as signalled by the MoU.
He disclosed that the Indonesia Eximbank was incorporated by virtue of Law Number 2/2009, as an export credit institution that provides export financing in the form of security, insurance and consultation services.
Like NEXIM, the Indonesian Eximbank supports its Government’s economic development aspirations by providing financing for (a) businesses that are into production of goods and services for export; (b) viable projects that are not attractive to commercial banks but have the prospects to increase the national export base; and (c) providing assistance to overcome the obstacles facing banks or other financial institutions in providing financing for exporters through various export credit instruments.
Wahyudi is hopeful that the MoU signed with NEXIM Bank would spur meaningful bilateral cooperation between the two countries for the promotion of the intentions expressed in the Articles. This becomes more germane given the readiness of the Government of Indonesia to enhance mutually beneficial economic relations with Nigeria as indicated during the official visit of the Minister for Foreign Affairs of the Republic of Indonesia, Mrs. Retno Marsudi in June this year.
Bello assured his Indonesian counterpart that NEXIM would do all within its mandate in regard to the intentions expressed in the document. Concluding, he expressed his hope that the MoU will strengthen Nigeria’s existing bilateral relations with Indonesia through increased technical assistance, promotion of non-oil export trade and other economic activities and thereby provide more support to the Government’s efforts to diversify the economy.
The Memorandum of Understanding between Indonesia Eximbank and NEXIM Bank is strictly limited to the expressed desires of the parties to enhance cooperation in respect of the matters set out in the document. It is not intended to impose or create any legally binding rights or obligations on the parties.
About NEXIM Bank – The Nigerian Export-Import Bank was established by Act 38 of 1991 as an Export Credit Agency with the broad mandate of promoting the diversification of the Nigerian economy and deepening the external sector, particularly the non-oil export sector through the provision of credit facilities in both local and foreign currencies; risk-bearing facilities through export credit guarantee & export credit insurance as well as business development and financial advisory services etc.
In pursuit of its mandate of promoting export diversification and deepening the non-oil export sector, the Bank’s current strategic initiatives are targeted towards boosting employment creation and foreign exchange earnings in the Manufacturing, Agro-processing, Solid Minerals and Services (Tourism, Transportation and Entertainment) (MASS) sectors. The Bank embraces the exchange of information on best practices in trade and project finance as an important value addition to its operations.