From Juliana Taiwo-Obalonye, Abuja
In a move to bolster economic cooperation and trade relations, the Export-Import Bank of the United States (EXIM) has signed a memorandum of understanding (MoU) with the Nigerian Export-Import Bank (NEXIM). The agreement, which was finalised virtually, aims to enhance collaboration in key sectors such as clean energy, critical minerals, aviation, and infrastructure.
The MoU was signed by President and Chair of EXIM, Reta Jo Lewis, and Managing Director and Chief Executive Officer of NEXIM, Abba Bello. During the ceremony, both leaders underscored the importance of the partnership in facilitating greater access to trade financing for Nigerian businesses while promoting U.S. exports to Nigeria.
President Lewis highlighted that Nigeria is currently the second-largest export destination for U.S. goods in Sub-Saharan Africa. “There is tremendous potential for growth in our trade relations,” she stated. “This MoU 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.”
Bello echoed these sentiments, describing the partnership as a landmark achievement that will not only strengthen trade ties but also enhance economic development in Nigeria. “We are confident that this collaboration will open new avenues for economic growth and development,” he remarked.
The MoU outlined several areas for potential collaboration, including: Clean Energy: With global emphasis on sustainable practices, both nations aim to explore opportunities in renewable energy projects.
Critical Minerals: As demand for critical minerals rises globally, the partnership seeks to facilitate U.S. exports in this vital sector.
Aviation: Enhancements in aviation infrastructure and services are anticipated as part of the agreement.
Infrastructure Development: The MoU aims to address infrastructure challenges in Nigeria through U.S. investment and expertise.
One of the key features of the MoU is the exploration of financing options through EXIM’s medium- and long-term loan guarantees and direct loans. The financial support is expected to significantly enhance the competitiveness of companies in both countries.
Over the past three years, EXIM has approved approximately $4 billion in authorizations aimed at supporting U.S. exports to sub-Saharan Africa. This new agreement aligns with EXIM’s mandate to promote American competitiveness and assist U.S. businesses in competing for global sales.
The Role of NEXIM, established by Act 38 of 1991, serves as Nigeria’s official export credit agency and export development bank. Its primary mandate is to provide financing, risk-bearing services, and advisory support to registered companies in Nigeria.
The bank aims to expand and diversify Nigeria’s non-oil export sector while attracting foreign investment through concessional lines of credit and co-financing arrangements.
Looking Ahead
Both EXIM and NEXIM expressed optimism that this MoU will not only strengthen bilateral trade but also contribute to job creation and economic growth in both nations.