The Managing Director and Chief Executive Officer of the Nigerian Export-Import Bank (NEXIM), Mr. Abubakar Abba Bello, has reaffirmed the bank’s commitment to providing more affordable financing options for Small and Medium Enterprises (SMEs) across Nigeria.
Speaking at the Abuja edition of the SME Export Finance Sensitisation Forum (EXCEL Programme), jointly organised by NEXIM and GIZ Nigeria under the SEDIN programme, Bello noted that access to affordable finance remains one of the biggest challenges confronting SMEs. He lamented that commercial bank interest rates, which currently peak at about 30 per cent, are unsustainable for small businesses.
He explained that NEXIM, in collaboration with other Development Finance Institutions (DFIs) such as the Bank of Industry (BoI) and the Development Bank of Nigeria (DBN), has been working to reduce the cost of funds and provide refinancing opportunities for MSMEs. The goal, he said, is to help these businesses become more competitive, sustainable, and capable of scaling their operations.
“One of the major issues affecting MSMEs is access to finance. Others include infrastructural deficits, regulatory challenges, and related constraints,” Bello stated. “Through sensitisation programmes like EXCEL, we aim to build the capacity of entrepreneurs and improve their ability to manage credit effectively.”
He added that many MSMEs struggle to attract equity investment or bank loans due to weak structures and poor documentation, noting that the sensitisation programme would help them understand the processes needed to make their businesses bankable and investment-ready.
According to him, MSMEs remain the backbone of Nigeria’s economy, accounting for 96.9 per cent of all registered businesses, contributing 48 per cent to the nation’s GDP, and employing 87.9 per cent of the workforce. However, he pointed out that about 55 per cent of these enterprises still face challenges in accessing finance, with many collapsing within their first five years due to financial, infrastructural, and regulatory hurdles.
Bello explained that the EXCEL Programme was conceived in partnership with GIZ to promote export financing as a key driver of economic growth. He cited World Bank data showing that exports currently contribute only 7.64 per cent to Nigeria’s GDP, underscoring the untapped potential of the country’s MSME export sector.
He highlighted NEXIM’s ongoing initiatives, including the SME Export Facility (SMEEF), the Women and Youth Export Facility (WAYEF), and the NEXA digital platform, which provides MSMEs with access to export and financial management services.
Bello further disclosed that the bank would soon begin onboarding SME clients onto the African Trade Gateway (ATG), a platform designed to enhance market access, improve payment systems, and deepen intra-African trade.
