Wednesday, February 1, 2012

NEXIM Bank Seeks Approval For N30bn Export Budget

NEXIM Bank Seeks Approval For N30bn Export Budget 
The Nigerian Export Import Bank said on Monday that it would support exporters with a budget of N30bn this year to boost export activities.

The Managing Director of NEXIM, Mr. Roberts Orya, who appeared before the House of Representatives c

Committee on Banking and Currency to defend its 2012 budget proposals, said that exporters in agriculture, solid minerals and manufacturing sectors would benefit from the N30bn.

However, he complained that NEXIM was facing challenges in recovering some old debts dating back to between 10 and 15 years.

Orya told the committee that while NEXIM had planned to recover about N1.9bn debts in 2011, it was able to recover only N418m.

He explained that the challenge in recovering some of the funds had to do with the inability of the bank to “trace the people behind them.”

Orya added, “Low recovery of debt has been the major challenge of NEXIM.

“We hope that this year we should be able to do much more better.

“Even at that in 2012 we are planning to recover N1.3bn and as soon as we are able to recover that, it will go into our loss and profit account,” he added.

Some members of the House urged NEXIM to work harder by justifying the reason the Federal Government set up the bank.

The chairman of the committee, Mr. Chukwu Onyereri, called on the bank to step up its loan recovery efforts.

On revenue generation, Orya said that the bank projected N3.08bn for this year, including the N1.3bn anticipated debt to be recovered.

He also stated that one of the bank’s major stakeholders, the Ministry of Finance Incorporated, would fully pay its share capital this year.

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