Nexim Bank is looking to unlock opportunities in Nigeria’s mining sector. According to the Managing Director of Nigerian Export-Import Bank (NEXIM Bank), Mr. Abba Bello, Nigeria has a huge solid minerals endowment with over 34 solid minerals available in commercial quantities. “Since I took over the helms of affairs in NEXIM, I have developed targeted products to unlock opportunities in the sector, including the Contract Financing Scheme and the Equipment Leasing framework,” he said during a working visit to the Dutse Granite Company Limited, which is Nigeria’s indigenous operator in the solid minerals sector that has commenced operations..
He further added that over the next few years, the solid minerals sector would increasingly realise the benefits of NEXIM’s intervention. “The objective of the bank is to ensure creation of jobs and to support forex earnings for the country,” he said.
Financing the mining sector
The MD said that in spite of this, the sector accounts for less than 1% of the country’s Gross Domestic Product (GDP) and contributes less than 1% of non-oil exports revenue. He also mentioned that part of challenges of the solid minerals sector was poor access to finance, given the capital-intensive nature of mining projects and the need for long term funds.
The Dutse Granite Company is based in Sharada Industrial Area, Kano, which produces granite tiles and slabs for import substitution and export. The company, which was incorporated in 2011, was first financed by NEXIM in 2015, but somehow encountered some challenges. According to Mr Bello, this led to disbursement of more money in 2018 and 2019, to enable the company acquire state of the art processing machinery and equipment.