NEXIM MD, Others Seek Quick Passage Of Nigerian Factory Bill

The Nigerian Export-Import Bank (NEXIM) says there is every need to expedite action on the passage of the Nigerian Factory Bill. The Bill seeks to amongst other objectives, promote Small and Medium-sized Enterprises (SMEs) development and also to serve as a strategic tool towards financial inclusion in trade services.

Managing director of NEXIM Bank, Mr Abba Bello and other partners of the bank made the call at a meeting with the Senate Committee on Banking, Insurance, and other Financial Institutions and the Nigerian Factoring Working Group on the promotion of Factoring in Nigeria. The meeting was held in Abuja.

The NEXIM Boss said when passed into law, the Bill before the lawmakers will help to create many Job opportunities in the country. According to Mr Bello, NEXIM Bank will partner Factory Chain International (FCI), Intra-African Trade Initiatives and African Export-Import Bank (Afreximbank) to do the needful for effective service delivery.

Factoring is a short-term, non-bank financing involving the purchase of receivables, which essentially is the conversion of credit sales to cash at a discount.

Factoring is considered a key instrument for supporting SMEs especially those that do not qualify for traditional bank lending. SMEs account for circa 40 per cent of employment and 30 per cent of GDP in low income countries. SMEs play a key role in intra-regional trade and Industrialisation.

“Factoring transaction is undertaken when a client is a seller of goods or services on credit terms and is done so that the seller and his business can receive cash more quickly with which to finance continued business operations,” he stated while briefing the committee members in Abuja on Monday.

The Nigerian Export-Import Bank has been working toward developing factoring as a trade finance instrument designed to promote Micro, Small and Medium Enterprises (MSMEs) development. The initiative also serves as a strategic tool toward financial inclusion in trade services. https://leadership.ng/2020/01/29/nexim-md-others-seek-quick-passage-of-nigerian-factory-bill/