The Nigerian Export-Import Bank (NEXIM) today expressed strong support for a proposed bill seeking to increase its share capital from ₦50 billion to ₦1 trillion, while also advocating for the removal of the Central Bank of Nigeria from its governing board.
Speaking at a one-day public hearing organised by the Senate Committee on Banking, Insurance and Other Financial Institutions, the Managing Director/Chief Executive Officer of NEXIM Bank, Abba Bello, said the current share capital of ₦50 billion, equivalent to about $33 million is grossly inadequate to support the bank’s mandate and align it with modern banking realities, reports Channels TV.
According to him, “The current capitalization limits the bank’s operational capacity and competitiveness. Raising it to 1 trillion naira will strengthen NEXIM’s ability to finance exports and support Nigeria’s participation in global trade.”
On the proposed reconstitution of the bank’s board, Bello backed the amendment seeking to exclude the CBN, noting that the apex bank already performs regulatory functions and should not serve as both a regulator and board member of a financial institution.
Several other stakeholders in the financial sector also supported the ₦1 trillion recapitalization plan including representatives from the National Insurance Commission (NAICOM), the President of the Capital Market Academics of Nigeria, Professor Uche Uwaleke and the Bank Directors Association of Nigeria (BDAN), who called for stronger collaboration within the banking and insurance sectors.
The Nigeria Deposit Insurance Corporation (NDIC), however, proposed that it should be represented on NEXIM’s board to ensure adequate oversight and protection of stakeholders’ interests.
Stakeholders also made presentations on a separate bill seeking to repeal the National Insurance Commission Act and replace it with the proposed Insurance Regulatory Commission Bill, 2025, aimed at strengthening the regulatory framework for the insurance industry.
In his closing remarks, the Chairman of the Senate Committee, Senator Adetokunbo Abiru (Lagos East), assured stakeholders that all submissions would be thoroughly reviewed to produce a robust piece of legislation that would enhance the powers and effectiveness of Nigeria’s financial and insurance regulators.
