By Kingsley Okoye

The Senate has passed for second reading a bill to amend the Nigerian Export-Import Bank (NEXIM) Act to allow recapitalisation and better governance structure.

This followed the presentation of the bill’s general principles on Tuesday by Sen. Abiru Adetokunbo (APC–Lagos) during plenary.

In his lead debate, Abiru said NEXIM Bank plays a vital role in diversifying Nigeria’s economy, earning foreign exchange, and creating employment opportunities.

He explained that the amendment aims to ensure the bank fulfils its mandate effectively and competes in the global financial environment.

Abiru noted the bank needs adequate recapitalisation and placement under a more suitable supervisory framework due to its national development role.

He said NEXIM was established in 1991 to promote and diversify exports through credit facilities, export guarantees, and risk insurance services.

He stressed that the bank provides vital financial access to Nigerian exporters, improves market access, and supports regional and global trade.

Abiru expressed concern that NEXIM has long operated under an outdated legal framework, limiting its capacity to address emerging challenges.

He said the amendment seeks to increase NEXIM’s share capital, which has remained at N50 billion since 1991.

“In dollar terms, that’s about $33 million from 1991, which is still its current capital,” he added.

He compared this with Ghana’s export bank, capitalised at $80 million, and Egypt’s export development bank at $420 million.

Abiru said it is crucial to strengthen export trade and improve NEXIM’s governance structure to meet present-day demands.

He added that one key aim of the current administration’s economic plan is to make NEXIM a strategic financial institution.

Such a move, he said, would support a resilient, export-driven, and globally competitive Nigerian economy.

He urged fellow lawmakers to support the bill’s progression beyond the second reading stage.

In his contribution, Sen. Solomon Adeola (APC–Ogun) described the bill as technical and long overdue.

He called for speedy passage, saying the bank is vital to growing the economy and supporting local exporters.

Following its second reading, Deputy Senate President, Barau Jibrin, referred the bill to the Committee on Banking, Insurance and other Financial Institutions.

The committee is expected to review the bill and report back to the plenary within four weeks. (NAN)(www.nannews.ng)

Edited by Kamal Tayo Oropo