NEXIM Bank, Indonesia Eximbank Fortify Bilateral Ties

By Modupe Gbadeyanka

In a bid to enhance cooperation and forge stronger relationships in promoting regional and global trade and investment between Indonesia and Nigeria, a Memorandum of Understanding (MoU) has been signed between the Indonesia Eximbank and the Nigerian Export-Import Bank (NEXIM Bank).

The MoU, according to a statement issued by the Head of Corporate Communication Department at NEXIM, Chinedu Moghalu, 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.

It is also 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.

Managing Director of NEXIM, Mr Abba 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, showing commitment on both sides to work towards a more mutually beneficial relationship.

He further 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 honorary president of G-NEXID since May 2015.

Mr Abba 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, he said, 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, its 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.

Mr 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.

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.

Mr Wahyudi expressed hopes 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 more 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.

Mr Wahydi 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.